Economists See Fed Rate Cut Next Week, at Least One More in 2025

Cracks in the job market will likely prompt the Federal Reserve to execute a series of interest-rate cuts in the coming months, beginning with a reduction next week, according to economists surveyed by Bloomberg News.

The median respondent sees two cuts by year’s end, but a sizable minority — more than 40% — anticipates three reductions. Of those anticipating two moves, economists were almost evenly split over whether a second cut would come in October or December.

Investors are leaning more heavily in the direction of three rate cuts this year, with federal funds futures almost fully pricing in ...