📢Two major domestic securities firms have spoken out, and the Fed is expected to cut interest rates in September!
🚀 Galaxy Securities and Founder Securities, two major securities firms, have recently expressed their views on the Fed's interest rate cut trend. It indicates that the Fed's interest rate cut in September is almost a foregone conclusion!
📊 Galaxy Securities analysis pointed out that based on the current economic situation in the United States, it is expected that the Federal Reserve will implement 2 to 3 interest rate cuts in the second half of 2024, with each interest rate cut expected to be 25 basis points, and the cumulative interest rate cut will reach 50 to 75 basis points.
📈 However, Founder Securities believes that according to the guidance of the dot chart, the Federal Reserve is expected to cut interest rates by 50 basis points this year, and there may be a cumulative interest rate cut of 125 to 150 basis points next year.
💼 Galaxy Securities pointed out that although US consumption is still strong at present, investment is affected by high interest rates, fiscal policy is still expanding, and unemployment is also rising. Therefore, the Fed's interest rate cut can not only ease investment pressure, but also support the economy. Moreover, the US economy is still resilient in the short term, so there is no need to cut interest rates by 50 basis points at one time.
📉 Founder Securities smelled the scent of interest rate cuts from Powell's speech at Jackson Hole. Powell said that the inflation target will be closer and he is confident in the upward inflation target. However, the labor market has cooled down and the downside risks have increased. The Fed does not want to see the labor market cool down further, so it is wise to cut interest rates.
👀 In short, both major brokerages believe that the Fed may cut interest rates by at least 25 basis points at the FOMC meeting in September. Founder Securities also specifically mentioned that the non-agricultural data in August may make the market's expectations for the economy and interest rate cuts clearer.
📈 If these predictions come true, U.S. Treasury yields and the U.S. dollar index may continue to decline, bringing new trading opportunities to the U.S. stock market and the crypto market.
🔍 So, as retail investors, how should we view these predictions? How will the Fed's interest rate cut decision affect our investment strategy? Leave your thoughts in the comments section and let’s discuss the potential impact of the Fed’s rate cut on the market!
