📢 Barclays predicts that the Federal Reserve will pause interest rate cuts after June next year
According to ChainCatcher, Barclays Bank has indicated that, given the expectations for U.S. (inflation) policy, the Federal Reserve may pause interest rate cuts after June next year and will not resume cutting rates until mid-2026.💡
🌟 Key Points:
At the December meeting, some FOMC participants reflected expectations regarding tariffs, leading to an increase in inflation forecasts.
Many FOMC members now believe that inflation risks are tilted to the upside, making interest rate cuts challenging.
We expect two rate cuts of 25 basis points in 2026, with a terminal rate of 3.25-3.50%.
Before the inflation pressures caused by tariffs dissipate, interest rate cuts will face numerous challenges. The timing and pace of further interest rate cuts by the Federal Reserve will depend on inflation dynamics and policy responses in the coming years.📊