After Europe announced a rate cut yesterday, Bank of America economists published a report at night, pointing out that
The Federal Reserve is likely to keep interest rates unchanged next week, while predicting two rate cuts this year starting in September.
The bank said: "The upcoming data should convince the Fed that the economy is cooling, but it needs more evidence of slowing inflation before it can cut rates." This forecast coincides with market pricing based on CME data. Meanwhile, the European Central Bank cut interest rates as expected today, but some analysts sensed a tough tone in the central bank's communication, indicating that there may not be further rate cuts in the future.
At the same time, the news was released at midnight today that the Federal Reserve will release the results of its annual bank stress test on June 27.
The Federal Reserve will release the results of its annual bank stress test at 4:30 p.m. on June 26 (4:30 a.m. Beijing time the next day), covering 32 banks with assets of $100 billion or more. In its statement on Thursday, the Federal Reserve said that the hypothetical scenario includes a severe global recession and pressure on commercial and residential real estate markets. The Fed will also include the "overall results" of the first exploratory analysis, but this part will not affect bank capital requirements. Stress testing is a tool to measure whether banks have enough capital to absorb losses and thus lend to households and businesses during a severe recession.
Judging from this series of news, the Fed is certain to cut interest rates, but the timing is still to be determined
