Barclays forecasts two interest rate cuts from the Fed for 2026

Barclays, one of the UK's leading financial institutions, projects that the US Federal Reserve (Fed) will decide to cut interest rates twice in 2026. In an assessment published by the bank's economists, it was stated that it is likely the Fed will lower the policy rate by 25 basis points each in March and June.

In the report prepared by Barclays, it was noted that the risks regarding interest rate cuts are skewed toward a delay in these cuts. Experts stated that the minutes from the Fed's December meeting also align with this scenario. At that meeting, the Fed had lowered the policy rate with another 25-basis-point cut.

According to the economists' projections, the published minutes support expectations that no new interest rate cut is expected in January. The assessment emphasized that "the FOMC needs time to observe the effects of the recent interest rate cuts; therefore, no major change in interest rate policy is expected in January."

The economic world continues to closely monitor the potential interest rate changes the US Federal Reserve will implement in 2026 due to its impact on global markets.

News Source: 12punto