US Fed looks set to resume rate cuts just as its peers are nearly done

Core Viewpoint - The U.S. Federal Reserve is poised to resume rate cuts, diverging from other major central banks that are nearing the end of their easing cycles [1]. Group 1: Central Bank Actions - The Swiss National Bank (SNB) is contemplating a return to negative rates after cutting its key rate to 0% in June, with inflation above the lower end of its target band [2]. - The Bank of Canada (BoC) faces pressure to cut rates due to a weak economy, high unemployment, and lower inflation, having already cut rates by 225 basis points since June 2024 [3]. - Sweden's Riksbank has cut rates significantly but is expected to hold steady, citing positive trends in growth and inflation [4]. - The Reserve Bank of New Zealand (RBNZ) may cut rates in October, following a recent cut to a three-year low of 3% [5]. - The European Central Bank (ECB) maintained its key rate at 2% and anticipates inflation to be below target at 1.9% in 2027, with a 50% chance of rate cuts by mid-2026 [6]. - The U.S. Federal Reserve is expected to cut rates by 25 basis points next week, with nearly 70 basis points of cuts priced in by year-end due to weakening jobs data [7]. Group 2: Political Influences - President Donald Trump has been vocal in urging the Fed to implement more rate cuts, and there is ongoing scrutiny regarding the fate of Fed governor Lisa Cook, whom Trump has attempted to dismiss [8].