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The U.S. economy currently remains the most important growth engine. However, whether U.S. consumers will soon receive support depends on a number of factors. In Europe, the economy is running at a much slower pace. Central banks are trying to combat this by cutting interest rates.

Services remain the driving force behind US economic performance. While economic activity is losing momentum, it does still remain intact. There are much greater challenges facing Europe and China, and both regions would benefit from additional stimuli.

Stumbling blocks in Europe and a change of focus in the US. Even though the starting situations in Europe and the US are different, the solution is similar. Will we see further interest rate cuts in September?

The U.S. economy is slowing down. This provides scope for rate cuts. Cuts have already been made in Europe, and seem to have hit the mark. The mechanism of interest rate cuts is turning the wheels on the long-awaited economic recovery. But be warned: the destination may be in sight but turbulence could make for a bumpy landing.

Interest-rate cuts have begun despite divergent data. Whether or not the stimulus is enough to reinvigorate the European economy on a lasting basis is uncertain. In the U.S., leading indicators are contributing to a mixed picture, and China is injecting further stimulus, particularly in the real estate sector.

It is well known that the final push is the hardest. And that goes for the fight against inflation too. In light of the good progress made, western central banks will now start cutting rates, but there won’t be many. A soft landing therefore also remains highly likely. We see geopolitics and overwhelming national debt as potential risk factors.