ANZ Bank: The Fed will cut interest rates by 200 basis points in this round of easing cycle

Odaily Odaily News: With the Federal Reserve widely expected to cut interest rates at its policy meeting next week, Brian Martin, head of G3 economics at ANZ, said he expects the Fed to cut interest rates by 200 basis points in the upcoming easing cycle. He said that the underlying financial and economic conditions in the United States do not mean that the easing cycle will start in a more forceful way. However, he added that if there is a substantial deterioration in labor market conditions, it would be reasonable to accelerate the pace of easing. ANZ expects the forecasts for 2024 and 2025 in the FOMC dot chart to move downward as members expect that more interest rate cuts will be needed during this period. (Jinshi)