In line with market expectations, Daniel Loughney of Mediolanum International Funds Limited predicts that the Federal Reserve will cut the federal funds target interest rate range by 25 basis points next week, driven by weak labor market data. The director and head of fixed income said in a report: “Recent interest rate cuts are seen as 'tight interest rate cuts', but the weak labor market may make this reaction more relaxed. “A key focus,” he said, will be the “bitmap” — the US Federal Open Market Committee members' interest rate forecasts — and the FOMC's quarterly economic forecast summary, as market participants will look for any shift in the Fed's sentiment, and this shift could reshape market expectations for 2026 monetary policy.

In line with market expectations, Daniel Loughney of Mediolanum International Funds Limited predicts that the Federal Reserve will cut the federal funds target interest rate range by 25 basis points next week, driven by weak labor market data. The director and head of fixed income said in a report: “Recent interest rate cuts are seen as 'tight interest rate cuts', but the weak labor market may make this reaction more relaxed. “A key focus,” he said, will be the “bitmap” — the US Federal Open Market Committee members' interest rate forecasts — and the FOMC's quarterly economic forecast summary, as market participants will look for any shift in the Fed's sentiment, and this shift could reshape market expectations for 2026 monetary policy.