According to Jin Ten Data, analysts at Credit Suisse expect the Federal Reserve may restart its rate cut cycle at the September FOMC meeting. Analysts pointed out that a weakening economic outlook will prompt the Fed to implement a more accommodative monetary policy in the second half of the year.
They added that the uncertainty surrounding inflation due to the tariff hikes and the political pressure from President Trump to cut interest rates hindered this month's rate cut.
Analysts stated that after July, stagnant private consumption and reduced investment plans indicate a softening of demand, and although inflation is above target, it is reasonable to ease restrictive policy stances.