CEO of Oxford Economics Institute: The Federal Reserve may start cutting interest rates in September

Adrian Cooper, CEO and Chief Economist of the Oxford Economics Institute, stated: "Our expectation is that the Federal Reserve will start cutting interest rates in the second half of this year, perhaps in September. However, this largely depends on changes in potential inflation, especially relative to wage growth. Over the past few years, labor inflation expectations have risen rapidly, which has surprised the Fed and many central banks. This means that workers are not only seeking pay raises to compensate for past higher-than-expected inflation but also because they believe that inflation may remain high and therefore seek pay increases. I think the Fed wants to see decisive evidence proving that the process of slowing down inflation will continue; it's not just overall inflation but core inflation returning to a 2% level before truly preparing for significant rate cuts."