ChainCatcher news: According to Jinshi, Jan Hatzius, chief economist of Goldman Sachs, said that they believe that the Federal Reserve has "good reasons" to cut interest rates at the July meeting, but did not change their forecast that the Federal Reserve will start cutting interest rates in September. According to the latest unemployment and inflation data, a federal funds rate of 4% is appropriate, while it is currently 5.25%-5.5%.
Therefore, rate cuts are expected to begin soon. The arguments for acting in July include the volatility of monthly inflation, which could make a September rate cut difficult to explain if there is a temporary re-acceleration, and the Fed's undeniable motivation to avoid starting rate cuts in the final two months of a presidential campaign. While this does not mean that the Fed cannot start cutting rates in September, it does make July a more appropriate time.