Analyst: The Federal Reserve May Resume Rate Cuts in September

According to a report by Jinse Finance, analysts at Julius Baer Bank in Switzerland wrote that the Federal Reserve may restart its rate-cutting cycle at the FOMC meeting in September. They stated that a weakening economic outlook suggests the Fed will adopt a more accommodative monetary policy in the second half of the year. They added that uncertainty surrounding inflation following tariff increases, as well as political pressure from President Trump to cut rates, have both hindered a rate cut this month. They noted that after July, stagnation in private consumption and reduced investment plans (indicating weakening demand) will demonstrate that, despite inflation being above target, it is reasonable to ease the restrictive policy stance. (Jin10)