Barclays: The Federal Reserve is expected to cut interest rates twice this year in July and September, each by 25 basis points;

Barclays stated that the likelihood of the Federal Reserve cutting rates this year is quite high, especially as inflation expectations remain elevated and the labor market remains resilient for longer than anticipated. The Federal Open Market Committee will aim to maintain a restrictive policy stance to ultimately bring inflation back to the 2% target, while also avoiding further tightening as the economy and labor market deteriorate. Barclays reaffirms its baseline expectation that the Federal Reserve will cut rates twice this year in July and September, each by 25 basis points, and will cut rates two more times in 2026.