Rabobank: Expects the Fed to cut rates twice in 2026

Odaily News According to Philip Marey, Senior US Strategist at Rabobank, despite upward revisions to inflation and growth expectations, the FOMC still anticipates one rate cut in 2026, indicating they expect to overlook temporary increases in energy prices. Given the FOMC's muted reaction to the inflationary impact of the Iran war, Rabobank now expects the Fed to cut rates once each in September and December, a reduction from the previous expectation of three cuts. This is because the bank believes that once Wash becomes the new chair, he will attempt to persuade the committee to implement more than one rate cut. However, the bank also warns that further escalation of the Iran conflict could lead to another reduction in its expected number of rate cuts for 2026. (Jin10)