Analysis: The Fed may be disappointed with 2026 rate cut expectations
Source: Odaily
Time: 2025-09-09 21:48:09
Odaily Planet Daily News The interest rate market is pricing a series of long-term rate cuts that the Federal Reserve has begun this month, and by the end of 2026, the Fed's target interest rate range will drop below 3%. According to Renaissance Macro's Neil Dutta, this expected path to sharp rate cuts is unlikely to be reflected in the Fed's September dot chart, which contrasts the Fed's trajectory with the market's expected trajectory. “The FOMC meeting is coming, and it’s hard to see how the Fed will meet expectations,” Duta wrote. To make the dot chart in September match the market forecast, eight Fed officials had to lower their 2026 dot rate to 3% or less. (Jin Shi)