Deutsche Bank expects the Federal Reserve to cut interest rates in September after Powell's speech, with further actions possible in December and March next year.

Economists at Deutsche Bank predict that the Federal Reserve is expected to cut interest rates by 25 basis points in September, after Federal Reserve Chairman Powell's speech at Jackson Hole was more dovish than they anticipated. Economists Matthew Luzzetti and Brett Ryan wrote in a report on Friday that after the September rate cut, there may be additional rate cuts of 25 basis points at the December and March meetings. The rate cuts would bring the federal funds rate to their longer-term estimate of the neutral level of interest rates. "Although a continued path of rate cuts is still possible if future data further reinforces concerns about the labor market, we believe that Powell is hinting at a more cautious approach".