Institution: The Fed's current round of interest rate cuts may continue until 2027

Odaily Planet Daily News Credit Mutuel Asset Management strategist Francois Rimeu pointed out that the Fed is expected to start a cycle of interest rate cuts this week, and this round of interest rate cuts may continue until 2027. “Weak economic activity and labor markets indicate a greater monetary easing than expected in June will result in a lower end interest rate in 2027 than previously expected,” he said in the report. In addition to the 25 basis point cut this week, the agency expects to cut interest rates again this year, with two further cuts in 2026 and eventually lowering interest rates to 3.1% in 2027, close to the long-term interest rate level of 3%. For 2028, the agency expects interest rates to remain stable. Data from the London Stock Exchange Group shows that the current pricing of the U.S. currency market reflects that nearly six interest rate cuts are expected by the end of next year. (Jin Shi)