Guotai Junan: Expects the Federal Reserve to Cut Interest Rates by 25 Basis Points in September, with a Maximum of Two Rate Cuts for the Year

BlockBeats News, August 24th. Guotai Junan Securities released a research report stating that Federal Reserve Chairman Powell's speech at the 2025 Jackson Hole Global Central Bank Annual Meeting showed a dovish signal, providing guidance for a rate cut in September. The report pointed out that Powell believes there is an upward risk of inflation, and the revision of the US monetary policy framework will make the policy more flexible. In a specific analysis, the report mentioned Powell's reassessment of the US labor market and the increased risk of employment, indicating a significant downside risk to employment in the short term, and the monetary policy may face a shift.

Guotai Junan predicts a 25 basis point rate cut in September, with a maximum of two rate cuts throughout the year, totaling approximately 50 basis points. The report emphasizes that the rate cut will not be too rapid, mainly out of precautionary considerations. (Zhitong Finance)