Guotai Junan: The Federal Reserve may cut interest rates by 25 basis points in September, with a maximum of 2 rate cuts for the entire year

According to ChainCatcher news, as reported by Zhitong Finance, Guotai Junan Securities released a research report stating that Federal Reserve Chairman Powell's speech at the 2025 Jackson Hole Global Central Bank Conference shows a dovish signal, which may provide guidance for a rate cut in September. The report points out that Powell believes inflation risks are to the upside, and the revision of the U.S. monetary policy framework will make policies more flexible.

In the specific analysis, the report mentions Powell's reassessment of the U.S. labor market and the increasing employment risks, indicating that there is a significant downside risk to employment in the short term, and monetary policy may face a shift. Guotai Junan expects a 25 basis point rate cut in September, with a maximum of 2 cuts throughout the year, totaling about 50 basis points. The report emphasizes that the pace of rate cuts will not be too fast, mainly for precautionary reasons.