The Fed is expected to cut interest rates three times this year!
Ronald Temple said in his second half outlook that his base case is that the Fed will start cutting interest rates in September and cut interest rates twice more later this year. The current benchmark federal funds borrowing rate is 5.25%-5.50%.
Temple said that with the rising unemployment rate, inflation and the economy are likely to cool this year. He pointed out in the report: "By September, the Federal Open Market Committee (FOMC) will get another three inflation and labor market reports to determine whether price pressures have been controlled."
The Fed is crying wolf again. Whether it can cut interest rates depends on the specific data released. The economic data for the two months of July and August is very important. If the data is not ideal, there is a possibility of a rate cut. Let's wait and see during this period, and operate cautiously.
