Barclays "Fed, rate cut this week certain…future policy uncertainty remains"

A forecast emerged that a rate cut this week is certain.

According to Jinshi News on the 15th, British investment bank Barclays said in a report that it is certain the U.S. Federal Reserve (Fed) will implement a 25bp rate cut this week.

However, it assessed that future policy stance remains uncertain. Marc Giannoni, the U.S. chief economist, said, "With inflation indicators still moderate, the Federal Open Market Committee (FOMC) will judge that downside risks to achieving employment goals are increasing," and "subsequent policy uncertainty will remain."

He added, "There will be little change in the Fed's economic outlook report, but the dot plot (dot plot, an indicator that gives a glimpse of Fed members' rate cut expectations) will reflect three rate cuts this year," and "one rate cut is expected in 2026 and 2027 respectively. The median long-term rate will be maintained at 3.0%."