Mitsubishi UFJ economist: The Federal Reserve will cut interest rates in 2027.

Derek Halpern, an economist at Mitsubishi UFJ Financial Group, indicated that the Federal Reserve's next policy action is likely to be an interest rate cut in 2027. He stated on Monday that as the Trump administration pushes for an agreement with Iran, oil prices are expected to fall, which will create greater policy space for Fed Chair Waller without the need for an interest rate hike. "I believe this administration is increasingly concerned about the level of U.S. interest rates and the gradual upward trend in rates," he said. He also noted that the coordination between the U.S. and Japan to support the yen may stem from concerns about rising U.S. Treasury yields.