Institution: Federal Reserve's Current Rate Cut Cycle Could Extend Until 2027

BlockBeats News, September 16th: Credit Mutuel Asset Management strategist Francois Rimeu pointed out that the Federal Reserve is expected to start a rate cut cycle this week, which may last until 2027.

In his report, he stated, "Weak economic activity and labor market suggest a need for more significant monetary easing than expected in June, which will result in the year-end rate in 2027 being lower than previously anticipated."

In addition to the expected 25 basis points rate cut this week, the institution expects another rate cut later this year, followed by two more cuts in 2026, with the rate eventually lowered to 3.1% in 2027, approaching the long-term rate level of 3%. For 2028, the institution anticipates rate stability. Data from the London Stock Exchange Group shows that the current pricing in the U.S. money markets reflects expectations of nearly six rate cuts by the end of next year. (FXStreet)