That's the expectation from Bank of America / Merrill Lynch for the FOMC after Fed Chair Powell's testimony on Wednesday

Powell "delivered a dovish testimony"

  • "hinting strongly at an upcoming cut"

BoA ML:

  • expect a 25bp cut in July (31st)
  • and cuts thereafter at each of the following two meetings (September17-18 and October 29-30)
  • cumulative 75bp of easing

More from the note:

  • The Fed seems to be willing to dismiss the better data from the US and instead is focusing on the weaker global data.
  • Indeed, when Powell was asked if the strong jobs report changed his views on cuts, he stated "no".