Moody's: The Federal Reserve may cut interest rates by 25 basis points in July

According to its latest analysis, global rating agency Moody's predicts that the Federal Reserve will start cutting interest rates by 25 basis points at the earliest in its meeting on July 30-31. Madhavi Bokil, Senior Vice President of Moody's Ratings, stated that CPI data confirmed our view that higher-than-expected inflation data in the first quarter was a one-off event. The rapid cooling of the labor market indicates that the impact of tight monetary policy is increasing. If FOMC decides to keep interest rates unchanged at its July meeting, it could further weaken the labor market and increase the possibility of a significant rate cut by 50 basis points in September. The agency expects that Fed will cumulatively cut interest rates by 50-75 basis points within this year and reduce another 100-125 basis points by 2025.