Federal Reserve's Kashkari: It is appropriate to cut interest rates twice more this year

On Friday, before the US stock market opened, Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, stated that it is appropriate to lower interest rates twice more this year.

The Federal Reserve's dot plot indicates that the committee expects to cut rates three times this year for a total of 75 basis points, with one cut each in 2026 and 2027, which is 25 basis points more than the June forecast.

Citi previously anticipated that after this rate cut, the Federal Reserve would lower rates by another 25 basis points in each of the remaining two meetings this year (October and December) to address the growing downside risks to employment.

Barclays also maintains its expectation for the Federal Reserve to cut rates by 25 basis points in both October and December, and expects a pause in rate cuts until inflationary pressures ease, followed by cuts of 25 basis points in March and June 2026.

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