Barclays: Fed Rate Cut Is a Foregone Conclusion, Future Policy Direction Remains Uncertain

According to ChainCatcher, citing Golden Ten Data, the market generally expects the Federal Reserve to cut interest rates by 25 basis points this week, but there is still uncertainty regarding the policy guidance after the decision. Marc Giannoni, Chief US Economist at Barclays, stated that with inflation data remaining moderate, the FOMC will determine that the downside risks to achieving employment targets are increasing. He added that there will be almost no changes to the Federal Reserve's economic forecast report, but the dot plot will indicate three rate cuts this year (each by 25 basis points), one rate cut each in 2026 and 2027, and the median long-term interest rate forecast will remain unchanged at 3%.