Economist: The Federal Reserve may significantly cut interest rates in December.

Economist Nettley of the Dutch international group said that the Federal Reserve might wait until December to cut interest rates, but would choose to significantly lower rates by 50 basis points. The economist stated that due to the inflationary impact of tariffs, the Federal Reserve would not lower interest rates immediately. However, the impact of tariffs on prices will be one-off. This will allow the central bank to boost the slowing economy later through interest rate cuts. The US money market is currently pricing in a high likelihood of a rate cut in September. However, Nettley also stated that the Federal Reserve may wait longer and choose not to implement a larger rate cut in December.