PiCK

Barclays: "Fed rate cuts now seen starting in September 2026"

JH Kim

Summary

Global investment bank Barclays said it has significantly delayed its forecast for when the U.S. Federal Reserve (Fed) will begin cutting interest rates compared with its previous outlook.
Barclays said it expects the Fed to cut rates twice—by 25bp (0.25 percentage points) each—in September 2026 and March 2027.
This is a sharp retreat from the expected rate cuts in June and September this year, and Barclays said that, considering inflation and economic conditions, the Fed is likely to keep rates elevated for the time being.

Forecast Trend Report by Period

Global investment bank Barclays (BARCLAYS) has pushed back its forecast for when the U.S. Federal Reserve (Fed) will begin cutting interest rates, significantly later than previously expected.

According to Walter Bloomberg on the 13th (local time), Barclays expects the Fed to cut rates twice—by 25bp (0.25 percentage points) each—in September 2026 and March 2027.

This marks a sharp retreat from its earlier expectation of rate cuts in June and September this year.

Barclays said that, given inflation and economic conditions, the Fed is likely to keep rates elevated for the time being.