Mr. Bocelli, PGIM's chief US economist, said the US's focus had shifted from inflation to labour market easing because of a cyclical hiring slowdown over the past few months, allowing the Fed to start cutting interest rates in September. The Fed is expected to announce a September cut at its meeting tonight. Another cut is likely at the December meeting, and the possibility of a November cut cannot be ignored. The Fed is expected to cut interest rates by about 150 basis points by the end of 2025.