Analyst: Data confirms that the Fed will cut interest rates next week.

In line with market expectations, Daniel Loughney of Mediolanum International Funds Limited predicts that the Federal Reserve will cut its federal funds target rate range by 25 basis points next week, driven by weakening labor market data. The director and head of fixed income stated in a report, "The recent rate cut has been seen as a 'hawkish easing,' but a soft labor market may lead to a more dovish response this time." He said a key focus will be on the "dot plot" - the rate forecasts of Federal Open Market Committee members - as well as the FOMC's quarterly economic projections summary, as market participants will look for any shifts in Fed sentiment that could reshape expectations for monetary policy in 2026.