The Federal Reserve is expected to initiate its first interest rate cut in September, according to PGIM Chief U.S. Economist Bocelli. This change comes as the U.S. economy experiences a slowdown in cyclical hiring, causing the Federal Reserve to shift its focus from inflation to easing the labour market.

Jinshi Data reported on July 31 that the Federal Reserve might announce the rate cut during its upcoming meeting. There is also potential for a further rate reduction in December, with the possibility of an additional cut in November. By the end of 2025, projections indicate that the Federal Reserve will have decreased interest rates by approximately 150 basis points in total.