Guotai Junan Securities: Powell turns dovish, September may start cutting interest rates

Guotai Haitong stated that this week, Powell's remarks at the Jackson Hole Federal Reserve meeting were more dovish than expected, leading to a decrease in US asset prices, a weakening of the US dollar, a fall in the 10-year US Treasury yield, and a rebound in US stocks. We believe that the Federal Reserve may start cutting interest rates in September, but due to the preemptive tone and inflation impact, the pace will not be too fast, with expectations of at most 2 rate cuts this year. As for the ECB, inflation is no longer a focus, and they may stay put in September.