Analyst: The Federal Reserve may restart the rate cut cycle in September

ChainCatcher news, analysts at Julius Baer wrote in a report that the Federal Reserve may restart its rate-cutting cycle at the September FOMC meeting. They stated that the weakening economic outlook means the Fed will implement looser monetary policy in the second half of the year.

They added that the uncertainty surrounding inflation after the tariff increases, along with the political pressure from President Trump to cut rates, hindered a rate cut this month. They indicated that stagnation in private consumption and a reduction in investment plans (indicating softening demand) after July will prove that, despite inflation being above target, it is reasonable to reduce the restrictive policy stance. (Jin Shi)