News

According to a report by Jinse Finance, Barclays and BNP Paribas expect the Federal Reserve to cut interest rates by 25 basis points in September, citing a shift in Fed Chair Jerome Powell’s stance on rising labor market risks at the Jackson Hole meeting. Barclays now forecasts two 25-basis-point rate cuts in September and December this year, stating that Powell’s remarks introduced a “dovish bias” and raised the bar for not cutting rates. BNP Paribas has also changed its long-held view that the Fed would remain on hold, now predicting rate cuts in both September and December. “Powell made it clear that the Fed intends to make a ‘fine-tuning’ rate cut in September unless the data indicate otherwise.”