Rate hike followed by rapid cuts? Pantheon expects the Fed to lower rates to 3.125% by the end of 2027.

Zhito Finance APP has learned that Pantheon Macroeconomics predicts the Federal Open Market Committee (FOMC) will shift to large-scale policy easing next year, lowering the federal funds rate from the current target range of 3.75%-4.00% to 3.125% by the end of the year. Even another 25 basis point rate hike within this year remains a near-term risk, as soaring energy costs are pushing up core goods prices.