ChainCatcher news, European Central Bank Governing Council member Kazaks said in a television interview with Latvian public broadcaster on Monday that the European Central Bank should lower interest rates next month. He stated, "Of course, there will be discussions, but I firmly believe that given the current state of the European economy, we must lower rates again in December." The European Central Bank has already cut rates three times and is expected to do so again next month. The PMI data released last Friday showed an unexpected contraction in the eurozone's private sector economy, with the market betting that the bank may further cut rates by 50 basis points. However, data expected to be released later this week is anticipated to show that the inflation rate in November will be above the European Central Bank's target of 2%.

ChainCatcher news, according to Bloomberg, former U.S. President and Republican presidential candidate Donald Trump reiterated that if elected again on November 5, he would significantly lower U.S. interest rates, but did not elaborate on any policy measures.This statement was made in response to questions from the audience about housing affordability at a town hall event in Lancaster, Pennsylvania. Trump stated: "We need to significantly lower interest rates to improve the economy, and one more thing—interest rates; you can't borrow money at all right now."

ChainCatcher news, many investors and some economists are concerned that the Federal Reserve has waited too long, putting the labor market and economic growth on thin ice, and injecting volatility into the financial markets. The latter was evident in last Friday's U.S. Treasury market, when traders suddenly resumed bets on a 50 basis point rate cut. The presidential election in November has also put the Federal Reserve's decision-making in an uncomfortable position. Republican candidate and former President Trump warned that the Federal Reserve should not cut rates before the election, while Democratic Senator Elizabeth Warren pressured officials to lower rates by 75 basis points.

ChainCatcher news, billionaire investor John Paulson predicts that the U.S. Federal Reserve will lower interest rates to as low as 2.5% by the end of 2025. Paulson stated that the Fed has been slow to act on rate cuts and will take measures to lower rates in the coming months. In an interview with Bloomberg Television, he estimated that the federal funds rate could drop to 3% next year, or even 2.5%. He pointed out that maintaining high real interest rates (the difference between bond yields and current inflation rates) means the Fed has fallen behind in easing monetary policy. He also emphasized that comments from the president and the treasury secretary on economic policy are crucial.

ChainCatcher news, officials from three major central banks hinted on Friday that they will firmly lower or continue to lower interest rates in the coming months, marking the end of the high borrowing cost era as the global economy emerges from post-pandemic inflation control. Federal Reserve Chairman Powell stated at the Jackson Hole meeting, "It's time for policy adjustments." He almost committed to a rate cut at the Fed's meeting in September. The determination of the start date for rate cuts, along with many large central banks around the world working in the same direction, has alleviated some of the investors' anxiety.Following the landmark rate cut in June, several members of the European Central Bank—Finnish Central Bank Governor Rehn, Latvian Central Bank Governor Kazaks, Croatian Central Bank Governor Vujcic, and Portuguese Central Bank Governor Centeno—expressed their support for another rate cut next month. Bank of England Governor Bailey indicated in a prepared speech that the risks of persistent inflation are diminishing, suggesting an openness to further rate cuts. However, Powell and other Fed officials did not provide much guidance on how quickly they plan to continue lowering rates in the coming months. KPMG Chief Economist Diane Swonk said, "It's all about selectivity and how they adjust their 'descent'." "This speech clearly indicates that the labor market is now their top priority."

ChainCatcher news, according to Jinshi reports, Federal Reserve Chairman Powell stated that inflation has clearly slowed down but remains above the 2% target. It is not appropriate to lower interest rates before the Federal Reserve's confidence in inflation continuing to move towards 2% strengthens. Recent inflation data shows "moderate" progress towards the 2% target.