Guotai Junan: Expects the Federal Reserve to cut rates by 25 basis points in September, with a maximum of 2 cuts for the entire year

BlockBeats news, August 24, Guotai Junan Securities released a research report stating that Federal Reserve Chairman Powell's speech at the 2025 Jackson Hole Global Central Bank Conference shows a dovish signal, providing guidance for a rate cut in September. The report pointed out that Powell believes inflation risks are to the upside, and the revision of the U.S. monetary policy framework will make the policy more flexible. In the specific analysis, the report mentioned Powell's reassessment of the U.S. labor market and the increasing employment risks, noting that there are significant short-term risks to employment, and monetary policy may face a shift.

Guotai Junan expects a 25 basis point rate cut in September, with a maximum of 2 rate cuts for the entire year, totaling about 50 basis points. The report emphasizes that the pace of rate cuts will not be too fast, mainly for precautionary reasons. (Zhitong Finance)