The Fed will announce its critical interest rate decision in just two days, on September 17. While the market considers a rate cut a certainty, a 25 basis point rate cut is priced in at 94.2%, and a 50 basis point rate cut is priced in at 5.8%.
At this point, while the September decision will be the FED’s first interest rate decision of 2025, British investment bank Barclays announced its forecast.
Barclays said in its report that it is certain that the Fed will cut interest rates by 25 basis points this week.
Barclays US Chief Economist Marc Giannoni said a 25 basis point rate cut in September was certain, but the future policy stance remained uncertain.
The Fed will cut interest rates by 25 basis points in September. However, with inflation indicators still moderate, the Federal Open Market Committee (FOMC) will determine that downside risks to achieving employment targets have increased. At this point, further policy uncertainty will persist.
The Fed’s economic outlook report will be little changed, but the dot plot will reflect three interest rate cuts this year.”
With just a few days left until the FED’s interest rate decision, US President Donald Trump continues to pressure interest rates.
Donald Trump increased pressure on the Fed to make a major cut, saying in his latest tweet, “Now is the perfect time to lower interest rates. I predict a major cut.”
Trump, who continues to pressure interest rates, insulted Fed Chairman Jerome Powell, calling him an “idiot” and threatening to dismiss him for not boldly lowering interest rates.
*This is not investment advice.
