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Analysts at Bank of America now project the Federal Reserve to cut interest rates twice this year, following a disappointing August jobs report. The firm projects a rate cut to come this month and in September, suggesting an additional 75 basis points of easing. “The shift in our view is motivated by both the softer labor data and Powell’s reaction function, as stated at Jackson Hole,” BofA wrote in a Friday note. JUST IN: Bank of America now projects the Federal Reserve to cut interest rates twice this year. pic.twitter.com/9z6cULLaiQ — Watcher.Guru (@WatcherGuru) September 5, 2025 Friday’s jobs report was disappointing, as forecasts were not met. US unemployment rates rose in August 2025 to 4.3%, their highest levels since October 2021. Additionally, only 22,000 new jobs were added to the economy last month, far below forecasts. Economists had expected the report to show 75,000 jobs were created in August, with the unemployment rate forecast to rise to 4...

US inflation in May reached 2.4% annually, and this came in below the 2.5% forecast that economists had been expecting. The rate was also up from April’s 2.3% reading. The Consumer Price Index data showed that inflation May 2025 cooled unexpectedly, with monthly growth of just 0.1% versus the 0.3% prediction that analysts had made. Core inflation held steady at 2.8% annually, and this was also below the anticipated 2.9% forecast. This softer reading has eased some market volatility concerns and reduced regulatory uncertainty, though high transaction fees continue to pressure consumers and businesses right now. Source: CBS News, Year-Over-Year Inflation Also Read: US Tariffs to Drag Euro-Area Inflation to 1.7%, EU Forecast Reveals How US Inflation in May 2025 Affects Market Volatility & Regulations Source: Watcher.Guru Energy Prices Drive US Inflation in May Decline The surprising US inflation in May deflation was led by gasoline prices, which fell 12% on a year over year basis. Cl...