ANZ: Fed may cut rates another 150 bps this cycle

The Federal Reserve may cut rates by another 150 basis points this cycle after cutting rates by 50 basis points overnight, ANZ research economists wrote in a report. They noted that the Fed's top priority is to ensure that economic activity and the labor market remain stable while inflation continues to ease sustainability. Powell hinted that if some employment and inflation data were released at the July meeting, the easing cycle would have begun by then. Analysts said the 50 basis point rate cut overnight was to ensure the Fed doesn't fall behind the curve. ANZ expects the Fed to cut rates by 25 basis points in consecutive meetings, for a total of 200 basis points in the current cycle.