The Federal Reserve's rate-cutting cycle may last until 2027, with the terminal rate potentially dropping to 3.1%

ChainCatcher news, according to Jinshi reports, Credit Mutuel Asset Management strategist Francois Rimeu pointed out that the Federal Reserve is expected to begin its rate-cutting cycle this week, which may last until 2027. He stated that the weakness in economic activity and the labor market indicates a need for more significant monetary easing, with the terminal rate expected to be lower than previously anticipated, ultimately dropping to 3.1%. Additionally, the institution expects another rate cut this year, followed by two more cuts in 2026.