Economist: Powell Clearly More Dovish, Expects Total Rate Cuts of 75 Basis Points by Year-End

According to a report by Jinse Finance, Nationwide's Chief Economist Kathy Bostjancic stated that the Federal Reserve will cut interest rates by a total of 75 basis points by the end of the year. She noted, "Powell has adopted a noticeably more dovish tone and has left the door wide open for a rate cut in September, believing that downside risks to employment are rising significantly. This supports our view of a 25 basis point rate cut next month, and we continue to expect the Fed to cut rates by a total of 75 basis points by year-end, as the labor market will weaken further and the rise in inflation is only moderate and temporary."