Reuters poll: Fed expected to cut interest rates twice more this year, rate path to 2026 highly uncertain

A Reuters poll of economists conducted from October 15 to 21 showed the Federal Reserve expecting a 25 basis point rate cut next week and again in December. However, economists remain sharply divided over where interest rates will be by the end of next year. A month ago, economists expected only one rate cut this year. But this new forecast follows a recent shift among Fed policymakers in favor of further rate cuts. All but two of the 117 economists surveyed predicted the Fed would cut interest rates by another 25 basis point on October 29, bringing the range to 3.75%-4.00%. Two economists predicted a 25 basis point cut in October and a 50 basis point cut in December. The percentage of economists predicting another rate cut in December has fallen to 71%. Financial market traders are firming their expectations, with interest rate futures contracts fully pricing in two more rate cuts this year. (Jinshi)