The Federal Reserve is almost certain to cut interest rates twice again in 2025, while the outlook for rate cuts in 2026 is uncertain

According to ChainCatcher news, John Luke Tyner, head of the fixed income department at Aptus Capital Advisors, stated that considering the Federal Reserve's shift to focus on the labor market and signs showing that price pressures are easing, it is almost certain that the Fed will cut rates twice more in 2025. However, as we enter 2026, the sustainability of the rate-cutting cycle will be questioned. The market expects the Fed to cut rates about three times in 2026, bringing the federal funds rate down to around 3%.