Guotai Junan expects the Federal Reserve to cut interest rates once or twice this year

According to news from Hashi Chain and reports from Zhitong Finance, Guotai Junan Securities released a research report stating that Powell's speech at the 2025 Jackson Hole Global Central Bank Annual Meeting contains clear dovish signals. He believes that the risks of employment downturn are greater than the risks of inflation increase, which may provide forward-looking guidance for a new round of preventive interest rate cuts. The revision of the U.S. monetary policy framework also points to a monetary policy that is more suited to the current environment and more flexible. The Federal Reserve might begin to cut interest rates in September, but under the preventive tone and the influence of inflation, the pace will not be too fast, with a maximum of two cuts expected within the year.