Lloyds Bank expects the Federal Reserve to hold interest rates steady in July and may begin cutting rates in September.

Lloyds Bank in the UK believes that the Federal Reserve's June meeting minutes, to be released next Wednesday, are not expected to change market expectations that interest rates will remain unchanged at the July meeting, with interest rate adjustments more likely to occur in September. The Fed's dot plot is still expected to forecast two rate cuts this year, but there is a clear divergence among policymakers, ranging from three rate cuts to no change. [ChainCatcher]