The Federal Reserve's latest meeting minutes indicate a shift in policy rate expectations, driven by weaker-than-expected employment data and increased risks to the labor market. Nearly all respondents in a market survey anticipate a 25-basis-point rate cut at the current meeting, with about half expecting an additional cut in October. Most respondents foresee at least two 25-basis-point cuts by the end of the year, with half predicting three cuts for the full year. Long-term interest rate expectations for 2027 and beyond remain unchanged, suggesting a quicker return to normal levels than previously anticipated.
Market Expects Federal Reserve to Cut Rates Amid Labor Market Concerns
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