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THE GIST
NEWS AND FEATURES
Global Philippines Fine Living
INSIGHTS
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
WEBINARS
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
DOWNLOADS
economy-ss-8
Inflation Update: Weak demand softens shocks
July 4, 2025 DOWNLOAD
948 x 535 px AdobeStock_433552847
Economic Updates
Monthly Economic Update: Fed cuts incoming   
June 30, 2025 DOWNLOAD
equities-3may23-2
Consensus Pricing
Consensus Pricing – June 2025
June 25, 2025 DOWNLOAD
View all Reports
Rates & Bonds 5 MIN READ

Policy Rate Views: US Fed weighs key factors for potential monetary easing

Monetary easing in the US may come soon. What would convince the US Fed to start cutting rates?

August 1, 2024By Metrobank Research
New York City skyline with the Chrysler building in the middle.

The US Federal Reserve is considering a potential rate cut as early as September 2024, driven by several key factors. Foremost among these is the moderation of inflation, with the Core Personal Consumption Expenditure (PCE) Price Index holding steady at 2.6% in June, down from higher levels earlier in the year.

This trend is complemented by a gradual decline in the Consumer Price Index (CPI), which decelerated to 3.0% in June. US Fed Chair Jerome Powell has acknowledged “modest” progress toward the 2% inflation target, signaling a more dovish stance on monetary policy.

Additionally, the labor market shows signs of achieving a better balance. While remaining strong with June nonfarm payrolls increasing by 206,000, a slight rise in unemployment to 4.1% suggests a gradual cooling.

Market expectations are also playing a role, with financial markets fully pricing in a 25-basis-point cut in September. The Fed’s recognition of further progress towards its dual mandate of price stability and maximum employment further supports the case for a potential rate cut.

These factors collectively contribute to Metrobank Research’s forecast of a possible 75 basis points reduction by the US Fed in the federal funds rate by year-end, potentially beginning with the September 18 Federal Open Market Committee (FOMC) meeting.

Download our report below for more details.

POLICY RATE VIEWS

Cut’s out of the bag: Powell open to September cut

The US Fed is considering several factors in its decision to commence monetary easing.

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