Barclays Now Expects Three Fed Rate Cuts in 2025

Key Takeaways:Barclays forecasts three Fed rate cuts in 2025: September, October, and December.Each cut is projected to be 25 basis points, taking the benchmark rate lower into year-end.The revised outlook is more dovish than its previous forecast of only two cuts.Barclays has raised its forecast for U.S. Federal Reserve policy easing, now expecting three interest rate cuts in 2025 instead of two.According to Jinshi Data, the bank predicts the Fed will cut rates by 25 basis points each in September, October, and December, citing a softer economic outlook and weaker labor market conditions.Previously, Barclays projected just two cuts in September and December. The revision reflects growing market consensus that the Fed will need to act more aggressively to support growth while inflation pressures remain contained.