Analysis: The Fed’s First Real Rate Cut May Come Next Year, Slight Decline Expected by Year-End

BlockBeats News, July 8 — Brendan Murphy, Head of Fixed Income at Insight Investment, stated in a report that U.S. interest rates may decline slightly before the end of this year, but substantial rate cuts are expected to occur next year.

Although the economic outlook is weakening, recent inflationary pressures caused by U.S. trade tariffs will make the Federal Reserve’s policy response more complex. In this context, the Fed is expected to adopt a cautious approach.

The institution anticipates that after inflationary pressures ease and growth concerns become the dominant factor in 2026, the Federal Reserve will take more decisive rate-cutting actions. (Jin10)