Australia and New Zealand Banking Group will further lower its expectations for a 50 basis point interest rate cut by the Federal Reserve.

Brian Martin, chief economist of ANZ Bank's G3, said that the Federal Open Market Committee of the Federal Reserve is expected to lower the federal funds rate this month, starting a total of 125 basis points of loosening cycle, with weak job market being the Fed's primary concern. He added that the sluggish hiring market has prompted ANZ Bank to further lower their expectations for the Fed rate cut by 50 basis points, with these rate cuts expected to be fully implemented by March next year. Martin pointed out that, given the persistently high uncertainty in inflation and the current inflation level deviating from the Fed's 2.0% target, a series of consecutive 25 basis points rate cuts is appropriate.