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

According to ChainCatcher, citing Golden Ten Data, Credit Mutuel Asset Management strategist Francois Rimeu pointed out that the Federal Reserve is expected to start a rate-cutting cycle this week, which may continue until 2027. He stated that weak economic activity and a sluggish labor market indicate the need for more substantial monetary easing, and the terminal rate is expected to be lower than previously anticipated, eventually dropping to 3.1%. In addition, the institution expects another rate cut this year and two further cuts in 2026.