🚀 Danske Bank Delays Fed Rate Cut Forecast Amid Easing Recession Risks

According to BlockBeats, analysts from Danske Bank's research center have revised their forecast for the Federal Reserve's interest rate cuts, citing a reduction in recession risks driven by recent tariff changes. The bank now anticipates the next rate cut by the Federal Reserve to occur in September, a quarter later than the previously predicted June timeline. However, the forecast for the terminal rate remains unchanged at 3.00%-3.25%.

The Federal Reserve is expected to implement quarterly rate cuts, with the terminal rate now projected to be reached by September 2026. The necessity for immediate rate cuts has diminished due to a more accommodative financial environment, lower tariffs, and stronger-than-expected macroeconomic data from April. Despite these short-term factors, long-term indicators such as structural growth slowdown and sluggish credit growth continue to suggest further rate cuts in the future.

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🚀 Federal Reserve Expected to Initiate Rate Cuts Amid Economic Concerns

According to PANews, Credit Mutuel Asset Management strategist Francois Rimeu anticipates that the Federal Reserve may begin a cycle of interest rate cuts this week, potentially extending until 2027. Rimeu suggests that the weakening economic activity and labor market necessitate more substantial monetary easing, predicting that the terminal rate will decrease to 3.1% by 2027, aligning closely with the long-term rate of 3%. The institution forecasts a 25 basis point rate cut this week, with another reduction expected later this year, followed by two additional cuts in 2026. Rates may stabilize in 2028. Data from the London Stock Exchange Group indicates that the U.S. money market currently expects nearly six rate cuts by the end of next year.

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