Institution: The Fed's interest rate cut cycle may continue until 2027

According to Jinshi Data, Francois Rimeu, a strategist at Credit Mutuel Asset Management, predicts that the Federal Reserve may begin a cycle of interest rate cuts this week that could continue until 2027. He stated that weak economic activity and the labor market require more substantial monetary easing, projecting the terminal interest rate to fall to 3.1% in 2027, close to the long-term interest rate level of 3%. The agency predicts that after this week's 25 basis point rate cut, there will be another rate cut this year, two further cuts in 2026, and interest rates may remain stable in 2028. According to data from the London Stock Exchange Group, US money markets currently expect nearly six rate cuts by the end of next year.