Cathay Haitong Securities has released a report suggesting that the Federal Reserve could start reducing interest rates as early as September, with a potential for up to two cuts this year. This follows Federal Reserve Chair Powell's speech at the 2025 Jackson Hole Global Central Bank Annual Meeting, which indicated a dovish shift in policy. Powell highlighted that the risks to employment are greater than those to inflation, suggesting a new round of precautionary rate cuts could be on the horizon. The report also notes that the revised US monetary policy framework supports a more adaptable approach, though the pace of rate cuts is expected to be moderate due to ongoing inflation concerns.