Summary
- Major U.S. banks said they expect the Fed to implement policy rate cuts at least twice this year.
- The nonfarm payrolls indicator fell well short of market expectations, prompting a shift from expecting a rate hold to expecting cuts.
- Bank of America, Goldman Sachs, Citigroup, etc., each predicted up to 75bp in cuts from September through December.
There is a growing expectation in the financial sector that the U.S. Federal Reserve (Fed) will cut its policy rate at least twice this year.
On the 6th (local time), Cointelegraph reported, "August nonfarm payrolls increased by 22,000, falling far short of the market expectation of 75,000. As a result, major banks have revised their previous outlooks and now expect rates to be cut at least twice this year."
Bank of America said it has abandoned its prior hold stance and now expects 25bp cuts in September and December. Goldman Sachs also forecasts three cuts totaling 75bp from September through November. Citigroup predicted three cuts in September, October, and December totaling 75bp.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
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