Bank of America: Fed rate cuts aim to protect jobs, next two cuts expected
Tom Hainlin, senior investment strategist at Bank of America, said we don't have a particular view on whether to cut rates by 25 basis points or 50 basis points. So wouldn't say we'd necessarily be surprised. Looking ahead, at least two more rate cuts should be expected between now and the end of the year. With inflation starting to get closer and closer to target, it's not surprising that Powell is focusing on the employment side of the mission, where he's concerned about potential downside risks in the labour market. There are signs that the labour market may be weaker than the data suggests. So this seems to us to be a kind of insurance policy relative to the labour market to prevent unemployment from rising and to keep the economy running well.
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