Barclays, BNP Paribas, and Deutsche Bank expect the US Federal Reserve to cut interest rates by 25 basis points (0.25%) at the September meeting, noting a shift in Fed Chair Jerome Powell’s tone at the Jackson Hole symposium towards increased risks in the labor market. Barclays revised its outlook, now anticipating two rate cuts this year, each by 25 basis points, in September and December. Sources at the bank indicated that the 15% tariffs imposed by the Trump administration on EU goods were close to the bank’s expectations, helping to avoid more pessimistic scenarios.