ANZ Bank: The Fed will cut interest rates by 200 basis points in this round of easing cycle

Amid widespread expectations that the Federal Reserve will cut interest rates at its policy meeting next week, ANZ head of G3 economics Brian Martin said he expects the Fed to cut rates by 200 basis points in the upcoming easing cycle. He said underlying financial and economic conditions in the United States do not mean the easing cycle will start in a more forceful way. However, he added that a faster pace of easing would be justified if labor market conditions deteriorated materially. ANZ expects the FOMC dot plot forecasts for 2024 and 2025 to move downward as members expect more rate cuts will be needed during this period. (Jinshi)