Commerzbank: US Rate Cut Sentiment May Persist

According to a report by Jinse Finance, Rainer Guntermann from the Research Department of Commerzbank stated that the renewed sentiment for rate cuts in the United States may persist. The interest rate strategist noted that following last Friday’s disappointing labor market report, this week’s U.S. data calendar is relatively light and unlikely to change this trend. He said, “Additionally, the Federal Reserve appears to be paying more attention to downside risks to economic growth, even though its latest comments still sound cautiously balanced, while price risks from tariffs remain.” After the release of weak nonfarm payroll data, the market has increased its expectations for a Fed rate cut in September. According to LSEG data, market pricing currently reflects an 86% probability of a 25-basis-point rate cut in September.