TechFlow, September 12 — A latest Reuters survey shows that nearly all of 107 economists predict the Federal Reserve will cut interest rates by 25 basis points to 4.00%-4.25% on September 17. Persistently soft labor market conditions have become the main driving factor, outweighing concerns about inflation. Sixty percent of respondents expect a cumulative 50 basis point reduction by the end of 2025, while 37% forecast a 75 basis point decline—significantly up from 22% last month. Markets have fully priced in a rate cut in September and anticipate three cuts in total this year. Although inflation may remain above the 2% target until 2027, most economists believe the Fed will continue its accommodative policy to support the job market.
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