Analysis of the Fed's September dot plot:
50 basis point rate cut in 2024: the benchmark interest rate is expected to drop from 5% to 4.5%.
100 basis point rate cut in 2025: the benchmark interest rate will further drop from 4.5% to 3.5%.
75 basis point rate cut in 2026: the benchmark interest rate will continue to drop from 3.5% to 2.75%.
These rate cut expectations indicate that the Fed will gradually ease monetary policy in the future and lower the benchmark interest rate year by year.
