Analyst: The Fed May Restart Rate Cuts in September
BlockBeats News, July 28th. Analysts at Bank Pictet wrote in a report that the Federal Reserve may restart its rate-cutting cycle at the September FOMC meeting. They said that weakening economic prospects imply that the Fed will implement looser monetary policy in the second half of the year. They added that uncertainty around inflation following the tariff hike, as well as political pressure from President Trump to cut rates, have hindered a rate cut this month.
They stated that after July, stagnant private consumption and reduced investment plans (indicating softening demand) will prove that despite inflation being above target, easing the restrictive policy stance is justified. (FXStreet)
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