Bank of America believes that the weaker-than-expected July nonfarm payrolls report, following other weak data such as the ISM manufacturing report, helped lock in the Fed's September rate cut. As a result, we have adjusted our outlook for monetary policy, leaning toward further rate cuts. We now expect the Fed to cut interest rates by 25 basis points at its September meeting. Despite this, we still expect the Fed to gradually ease monetary policy. While making this adjustment in expectations, we have also lowered our expectations for the final interest rate of the upcoming normalization cycle, lowering our expectations by 25 basis points to 3.25-3.5%. If the economy cools faster than we or the Fed expect, then this means a reduced need for a long-term high-interest rate policy stance.