GF Securities Review: The time has come for the 2024 Jackson Hole meeting, and the Fed is expected to cut interest rates in September.

On August 24th, Jin10 Data reported that Fangzheng Securities’ latest research view believes that Fed Chairman Powell’s speech at Jackson Hole was dovish, believing that the time for policy adjustment has come and the market is betting on further rate cuts. Powell believes that the Fed is closer to achieving its inflation target, with upward risks dissipating and greater confidence in achieving the inflation target. However, the labor market has cooled significantly, with increasing downward risks, and the Fed does not seek or welcome further cooling of the labor market. We expect that the August non-farm payrolls will accelerate the refutation of overly pessimistic economic expectations and overly optimistic rate cut expectations. The Fed is expected to cut rates by 25bps at the September FOMC meeting, with the dot plot indicating a cumulative rate cut of 50bps this year and 125-150bps next year.