Reuters Survey: The Fed is Expected to Cut Rates by Another 75 Basis Points Next Year, Bringing the Final Rate to Around 3.00%-3.25%
BlockBeats News, September 12th. A Reuters survey showed that almost all of the 107 economists predicted that the Federal Reserve will implement a 25 basis point key interest rate cut on September 17th, with most experts expecting further rate cuts in the first quarter of next year. The market has fully priced in the September rate cut expectations, with the current expectation of three rate cuts this year, up from the previous expectation of two just a few weeks ago.
Among the 107 surveyed economists, 64 people (60%) expect a cumulative 50 basis point rate cut by the end of 2025, with 37% of experts predicting a 75 basis point cut by the end of this year, a significant increase from the 22% proportion in August. 26 economists indicated that in the next year, there is a higher likelihood of either a surge in inflation or a situation where inflation and the unemployment rate rise rapidly together. The median of the survey suggests that the Federal Reserve is likely to cut rates by another 75 basis points next year, bringing the federal funds rate to 3.00%-3.25%.
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