Guotai Junan: Expects the Fed to cut interest rates by 25 basis points in September, with a maximum of 2 rate cuts for the year.

On August 24, Guotai Junan Securities released a research report stating that Fed Chairman Powell's speech at the 2025 Jackson Hole Global Central Banking Conference showed dovish signals, providing guidance for a rate cut in September. The report pointed out that Powell believes inflation risks are on the rise, and the revision of the U.S. monetary policy framework will make policy more flexible. In the specific analysis, the report mentioned Powell's reassessment of the U.S. labor market and the increase in employment risks, indicating that there is a significant short-term risk of job downturn, and monetary policy may face a shift. Guotai Junan expects a 25 basis point rate cut in September, with a maximum of 2 cuts for the year, totaling approximately 50 basis points. The report emphasized that the pace of rate cuts will not be too fast, mainly for precautionary reasons. ( Zhitong Finance )