Scotiabank has revised its forecast for the Federal Reserve's next interest rate cut, moving the expected date from March to June 2026. The bank still anticipates a total of 75 basis points in rate reductions this year, which would lower the terminal rate to 3%. According to TD Securities, the Fed is expected to implement 25 basis point cuts in June, September, and December. Oscar Munoz, Chief U.S. Macro Strategist at TD Securities, explained that the expected policy easing is not driven by worsening economic conditions. Instead, it reflects a normalization of monetary policy as inflation gradually aligns with target levels.