Institution: The Fed's current round of interest rate cuts may continue until 2027

Francois Rimeu, a strategist at Credit Mutuel Asset Management, noted that the Federal Reserve is expected to begin a cycle of rate cuts this week, with these cuts likely to continue until 2027. He stated in a report: "Weak economic activity and labor market conditions suggest the need for more substantial monetary easing than anticipated in June, which would result in lower terminal interest rates in 2027 than previously anticipated." In addition to the 25 basis point rate cut expected this week, the agency anticipates another rate cut this year, two further cuts in 2026, and a final rate reduction to 3.1% in 2027, close to the long-term rate of 3%. For 2028, the agency expects interest rates to remain stable. Data from the London Stock Exchange Group shows that US money markets are currently pricing in nearly six rate cuts by the end of next year. (Jinshi)