Galaxy Securities: It is appropriate for the Fed to cut interest rates 2 to 3 times, with a cumulative 50-75BP

Golden Ten Data on August 24, Galaxy Securities Research Report said that considering that United States consumption in the second half of 2024 will not stall significantly under the support of wages and other income, investment is still suppressed by high interest rates, fiscal expansion continues to support the economy, and the overall unemployment rate continues to rise, the Federal Reserve has cut interest rates 2 to 3 times, with a cumulative 50-75BP is appropriate, and the difference between two or three interest rate cuts on the economy is limited. At the same time, there is no need for a single interest rate cut of 50BP under the economic resilience of the year, and market expectations are still slightly optimistic. As the Fed shifts its focus to the labor market, while the unemployment rate rises further and the economy remains resilient in the short term, the market may continue to focus on the "interest rate cut trade", while the weakening of labor data and investment data may lead to a phased decay trade, and the decline in short-term Treasury yields and the U.S. dollar index will continue to be supported.