Barclays Sees Fed Delivering Two Rate Cuts in 2025

Barclays has revised its outlook for U.S. monetary policy, saying it now expects the Federal Reserve to lower its benchmark interest rate twice this year—by 25 basis points in both September and December. The bank’s previous projection called for a single 25-basis-point reduction in December. The updated forecast suggests Barclays believes U.S. inflation and growth conditions will soften enough in the coming months to prompt an earlier start to policy easing. Market participants have been debating the timing of the Fed’s first rate cut as officials signal that any move will depend on further evidence of cooling price pressures.