Survey shows: Most economists expect the Federal Reserve to cut interest rates in September and to cut rates again later this year.

A majority of economists surveyed by Reuters predict that the Federal Reserve will cut interest rates for the first time this year in September, and may cut again before the end of the year, which is the baseline forecast. Concerns about the health of the US economy are increasing. Out of 110 respondents, 67 expect the Fed to cut the benchmark interest rate by 25 basis points to 4.0% - 4.25% in September, marking the first rate cut of the year, up from 53% in the July survey, with one person expecting a 50 basis point increase. The remaining 42 predict that the Fed will keep rates unchanged. Over 60% of respondents expect one to two rate cuts this year, consistent with last month. However, there is no consensus on the level of the federal funds rate by the end of 2025. Additionally, 68% of respondents also expect that the Fed's independence will not be seriously eroded during Powell's remaining term.