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2025-07-31 15:49:59
[Institution: The threshold for the Fed to cut interest rates in September has been raised] Van Lanschot Kempen investment strategist Joost Van Leenders said in a report that the threshold for a rate cut in September has been raised after the Federal Reserve decided to keep interest rates unchanged on Wednesday, although two dissenters voted in favor of a 25 basis point rate cut. The senior investment strategist said that the Fed will get two rounds of inflation and employment data, but the changes in these data are unlikely to be large enough to require a rate cut. He said that for interest rates to be cut, inflation should ease towards the Fed's 2% target, but given the import tariff transmission effect we expect, the possibility of this happening is extremely low. Another scenario is that the labor market needs to weaken significantly.
