Moody's: Fed could cut rates by 25 basis points in July
2024-07-16 10:15:32
On July 16, according to its latest analysis, global rating agency Moody's expects the Federal Reserve to start cutting interest rates by 25 basis points as early as its July 30-31 meeting. Madhavi Bokil, senior vice president of Moody's Ratings, said the CPI data confirms our view that the higher-than-expected inflation data for Quarter 1 is a one-off. The rapid cooling of the labor market indicates that the impact of tighter monetary policy is increasing. If the FOMC decides to leave interest rates unchanged at its July meeting, the labor market could weaken further, increasing the likelihood of a significant 50 basis point rate cut in September. The agency expects the Fed to cut interest rates by a cumulative 50-75 basis points this year and another 100-125 basis points by 2025.
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