Updated
Updated · Bloomberg · Jul 25
Economists See Fed Cutting Rates 25 Basis Points by Q3 2027 as Markets Price In Hikes
Updated
Updated · Bloomberg · Jul 25

Economists See Fed Cutting Rates 25 Basis Points by Q3 2027 as Markets Price In Hikes

3 articles · Updated · Bloomberg · Jul 25

Summary

  • A Bloomberg survey found economists still expect the Federal Reserve’s next move to be a 25-basis-point rate cut in the third quarter of 2027.
  • That forecast shifted a quarter later than in last month’s survey, showing economists have pushed back the timing but not the direction of the Fed’s next move.
  • Markets and some policymakers are signaling the opposite risk, with investors pricing in higher borrowing costs by year-end and officials suggesting rate hikes could still be ahead.

Insights

With consumer debt delinquencies surging, will the economy break before the Fed finally delivers a rate cut in 2027?
Could the massive AI boom force the Federal Reserve to shock markets with an unexpected rate hike this September?