Reuters survey: The Federal Reserve will cut interest rates by another 75 basis points next year, with the terminal rate approaching 3.00%-3.25%

ChainCatcher news, according to a Reuters survey, nearly all of the 107 economists predict that the Federal Reserve will implement a 25 basis point cut to the key interest rate on September 17, with most experts expecting further rate cuts in the first quarter of next year. The market has fully absorbed the expectation of a rate cut in September, and now anticipates three rate cuts by the end of the year, whereas just a few weeks ago, only two cuts were expected.

Among the 107 surveyed economists, 64 (60%) expect that by the end of 2025, rates will have been cut by a cumulative 50 basis points, while 37% of experts predict a reduction of 75 basis points within the year, a significant increase from 22% in August. Twenty-six economists indicated that there is a higher likelihood of a surge in inflation or a scenario where inflation and unemployment rise rapidly together in the coming year. The median of the survey suggests that the Federal Reserve will cut rates by another 75 basis points next year, bringing the federal funds rate down to 3.00%-3.25%.