ANZ Bank Predicts 200 Basis Point Rate Cut Cycle from Fed in Current Lax Period
Publication Time:2024-09-13 08:36:08
Amidst widespread market expectations of an impending easing policy from the Federal Reserve, Brian Martin, head of the G3 Economics team at ANZ Bank, highlighted that the bank expects the central bank to cut rates by a total of 200 basis points during this cycle of easing. While the underlying economic and financial conditions in the United States may not warrant a stronger easing move, accelerating rate cuts would be reasonable if there is a substantial deterioration in labor market conditions. ANZ Bank anticipates that the long-term interest rate forecast values in the Federal Open Market Committee (FOMC) dot plot will be lowered in 2024 and 2025, reflecting the committee's expectation of potentially needing larger rate cuts in these periods.
rate cut
Federal Reserve
Basis Points
Lax Period
ANZ Bank