Rabobank: Expects the Federal Reserve to cut interest rates twice in 2026.

Philip Marey, senior U.S. strategist at Rabobank, pointed out that despite upward revisions to inflation and growth expectations, the FOMC still projects one rate cut in 2026, suggesting they expect to ignore temporary increases in energy prices. Given the FOMC's muted response to the inflationary impact of the Iran war, Rabobank now expects the Fed to cut rates once in September and once in December, a reduction from its previous forecast of three cuts. The bank believes that once Warsh becomes the new chairman, he will try to persuade the committee to implement more than one rate cut. However, the bank also warned that further escalation of the conflict with Iran could lead to a further reduction in its forecast for the number of rate cuts in 2026. (Jinshi)