Wells Fargo predicts that the Federal Reserve will cut interest rates five times, by 25 basis points each time, by mid-2026. The bank expects consecutive rate cuts in the next three meetings, bringing the rate to 3.50%-3.75% by the end of the year, followed by two more rate cuts in March and June 2026, lowering the rate range to 3.00%-3.25%. This outlook reflects the weak labor market, with average job growth of only 29,000 in August and the unemployment rate rising to 4.3%. Inflation remains a challenge, with core PCE growth at 2.9% year-on-year, but Wells Fargo noted that inflation expectations remain stable. The bank raised the probability of a US recession next year to 35%, but expects stronger economic growth in the coming years, predicting GDP growth of 2.4% in 2026 as fiscal stimulus and interest rate cuts take effect. (Jinshi)