Reuters Poll: Fed Seen Cutting Rates Twice More This Year, 2026 Rate Path Highly Uncertain

BlockBeats News, October 21st, a Reuters survey of economists conducted from October 15th to 21st showed that the Federal Reserve is expected to cut interest rates by 25 basis points next week and in December.

However, there is still a significant difference of opinion among economists regarding the interest rate level at the end of next year. A month ago, economists expected only one rate cut this year. But this new forecast follows a recent shift in expectations among Fed policymakers towards further rate cuts.

Among 117 economists, all but two predict that the Fed will cut interest rates by 25 basis points again on October 29th, bringing the rate down to 3.75%-4.00%. Two economists expect a 25 basis point cut in October and a 50 basis point cut in December.

The percentage of economists expecting another rate cut in December has dropped to 71%. Financial market traders are more convinced, as interest rate futures contracts have fully priced in two more rate cuts this year.