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🚀 Fed Chair Powell Signals Dovish Shift at Jackson Hole Meeting

According to BlockBeats, a research report by Guotai Junan Securities indicates that U.S. Federal Reserve Chair Jerome Powell's speech at the 2025 Jackson Hole Global Central Bank Meeting suggests a dovish shift, providing guidance for a potential interest rate cut in September. The report highlights Powell's concerns about rising inflation risks and the revision of the U.S. monetary policy framework to allow for greater flexibility.

In its analysis, the report notes Powell's reassessment of the U.S. labor market and the increased employment risks, pointing out significant short-term downside risks to employment, which may prompt a shift in monetary policy.

Guotai Junan forecasts a 25 basis point rate cut in September, with a maximum of two cuts throughout the year, totaling approximately 50 basis points. The report emphasizes that the pace of rate cuts will not be rapid, primarily due to precautionary considerations.


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🚀 Fed Rate Decision: Low Probability of March Rate Cut, CME Data Shows

The CME's FedWatch tool indicates a mere 2.6% probability of a 25 basis point rate cut by the Federal Reserve in March, with a 97.4% chance of maintaining the current rate. According to Jin10, the likelihood of a cumulative 25 basis point rate cut by April stands at 14.4%, while the probability of keeping rates unchanged is 85.3%. Additionally, there is a 0.3% chance of a cumulative 50 basis point cut by April. Looking ahead to June, the probability of a cumulative 25 basis point rate cut increases to 37.1%.

#FedRateDecision #CMEData #FedWatchTool #RateCutProbability #FederalReserve #MarchRateCut #InterestRates #FinancialMarkets #RateCutForecast #AprilRateCut #JuneRateCut