Wells Fargo forecasts five policy rate cuts by June next year

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Summary

Wells Fargo said the Fed will carry out five policy rate cuts by June next year.
The report analyzed that the policy rate would fall to 3%~3.25%.
Wells Fargo raised the probability of a U.S. recession to 35% but projected next year's GDP growth rate would reach 2.4%.

A forecast has emerged that the U.S. Federal Reserve (Fed) will cut rates five times by June 2026.

On the 10th (local time), according to Walter Bloomberg, Wells Fargo said in a report, "the Fed will cut rates by 25bp five times by June next year," and analyzed that "the terminal policy rate will reach 3%~3.25%."

Wells Fargo raised the probability of a U.S. recession within a year to 35%. However, it forecast that next year's gross domestic product (GDP) growth rate would reach 2.4% due to the rate cuts.