Amid widespread expectations that the Federal Reserve will cut rates at its policy meeting next week, Brian Martin, head of economics at ANZ G3, said he expects the Fed to cut rates by 200 basis points during the upcoming easing cycle. He said the underlying financial and economic conditions in the United States do not mean that the easing cycle will begin in a more forceful manner. However, he added that if there is a material deterioration in labour market conditions, then it is reasonable to accelerate the pace of easing. ANZ expects the FOMC dot plot projections for 2024 and 2025 to move down as members anticipate that more rate cuts will be needed during this period.