Reuters Survey: The Federal Reserve Will Cut Rates by Another 75 Basis Points Next Year, Final Rate Will Approach 3.00%-3.25%

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

Of the 107 economists surveyed, 64 (accounting for 60%) expect a cumulative rate cut of 50 basis points by the end of 2025, while 37% of experts predict a rate cut of 75 basis points within the year, a significant increase from 22% in August. 26 economists said that in the coming year, it is more likely to see a surge in inflation or a scenario where both inflation and unemployment rates rise rapidly. The median of the survey indicates 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%.