Julius Baer: Fed may start cutting rates in October
– The Swiss bank expects 4 rate cuts of 25 bps starting in October.
– By March 2026, the rate could fall from 4.5% to 3.5%.
– After that, the Fed is likely to pause.
– The main reason is easing inflation, not recession or rising unemployment.
– Inflation is projected to stay around 3%, above the Fed’s 2% target.