ING has brought forward its Federal Reserve rate cut expectations from December to September

James Knightley, Chief International Economist at ING (ING Group), believes that a weak labor market and slowing economic growth indicate that the Federal Reserve may start cutting interest rates sooner. The U.S. employment report released last Friday serves as a warning, as the pressures for rate cuts are increasing with the U.S. job market and overall growth outlook becoming less stable. Although tariffs will push up prices, we do not believe there will be long-term inflationary pressures; therefore, we think the Federal Reserve is likely to start cutting rates as early as next month. The Federal Reserve is expected to make two more rate cuts after the one in September. After Jerome Powell's term ends, a new Federal Reserve Chair will take office, at which point the Federal Reserve "will be more inclined towards a dovish stance starting in the second quarter of 2026."