Federal Reserve's Rate Cuts May Exceed Expectations This Year

The Federal Reserve's interest rate cuts this year could surpass current expectations, according to a report by Roger Lueger, Head of Multi-Asset Solutions at Swisscanto/ZKB. According to ChainCatcher, Lueger suggests that a potential weakening in the labor market might prompt the Federal Reserve to reduce rates more aggressively. This week, the Federal Reserve maintained its policy rate and projected one rate cut for the year. Lueger anticipates rate cuts in September and December, while the money market currently predicts less than one rate cut this year.