Institutions: Fed rate cut cycle may continue until 2027
Source: PANews
Time: 2025-09-16 16:23:39
PANews reported on September 16 that according to Kingshin data, Credit Mutuel Asset Management strategist Francois Rimeu predicts that the Federal Reserve may start a rate cut cycle this week and may continue until 2027.
He said weak economic activity and labor markets require greater monetary easing, and terminal interest rates are expected to drop to 3.1% in 2027, close to the long-term interest rate level of 3%. The institution predicts that after a 25 basis point cut this week, it will cut interest rates again this year, with further interest rates cuts twice in 2026, and interest rates may remain stable in 2028. According to data from the London Stock Exchange Group, the U.S. currency market is currently expected to cut interest rates nearly six times by the end of next year.