Bank of America believes that the weaker-than-expected July non-farm payrolls report helped lock in the Fed's September rate cut, following weakness in other data such as the ISM manufacturing report. As a result, we have adjusted our outlook for monetary policy in favor of further rate cuts. We now expect the Fed to cut rates by 25 basis points at its September meeting. Nonetheless, we still expect the Fed to ease monetary policy gradually. In conjunction with this expectation adjustment, we have also lowered our expectations for final interest rates for the upcoming normalization cycle, lowering our expectations by 25 basis points to 3.25-3%. If the economy cools faster than we or the Federal Reserve expect, then that means there is less demand for a long-term policy stance of high interest rates.