Barclays: The Fed will cut rates by 25 basis points this week, and by another 25 basis points each in March and June next year.

On December 9, Barclays predicted that the Federal Reserve would cut rates by 25 basis points to a range of 3.5% to 3.75% at this week’s policy meeting. The post-meeting statement is expected to include hawkish language, suggesting a pause in rate cuts in January next year. The bank currently maintains its forecast for two 25 basis point rate cuts in March and June next year. Barclays believes that the new Summary of Economic Projections may show little change in economic forecasts, while the dot plot will reflect one rate cut each in 2026 and 2027, each by 25 basis points. The median long-term rate forecast is expected to remain at 3%. (Jin10)