Credit Mutuel Asset Management strategist Francois Rimeu forecasts that the Federal Reserve may initiate an interest rate cut cycle this week, potentially extending until 2027. Rimeu cites weak economic activity and labor market conditions as reasons for the anticipated monetary easing, projecting the terminal interest rate to decrease to 3.1% by 2027. The agency expects a 25 basis point cut this week, followed by another cut this year and two more in 2026, with rates stabilizing in 2028. US money markets currently anticipate nearly six rate cuts by the end of next year, according to the London Stock Exchange Group.
Fed's Interest Rate Cut Cycle Could Extend to 2027, Says Strategist
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