Reuters survey: The Fed is expected to cut interest rates two more times this year, with a high degree of uncertainty regarding the interest rate path in 2026.

[Reuters Survey: Fed Expected to Cut Rates Twice More This Year, Rate Path Highly Uncertain in 2026] A survey conducted by Reuters from October 15 to 21 among economists shows that the Fed is expected to cut rates by 25 basis points next week and in December. However, there is still significant disagreement among economists regarding the rate level by the end of next year. A month ago, economists anticipated only one rate cut this year. But this new forecast closely follows a recent shift in expectations from Fed policymakers towards supporting further rate cuts. Among 117 economists, 115 predict that the Fed will cut rates by another 25 basis points on October 29, bringing the rate down to 3.75%-4.00%, with two economists expecting a 25 basis point cut in October and a 50 basis point cut in December. The proportion of economists expecting another rate cut in December has fallen to 71%. Financial market traders have more firmly priced in expectations, with interest rate futures contracts fully pricing in two more rate cuts this year. ( Jin10 )