Reuters poll: most economists expect Fed to cut rates by 25 bps in September, two more cuts over the year

A Reuters poll showed that most economists surveyed believe the Federal Reserve will cut interest rates by 25 basis points at each of its three remaining policy meetings in 2024, with only nine of 101 economists expecting the Fed to cut rates by 50 basis points next week. Stephen Stanley, chief U.S. economist at Santander, said: ‘The jobs report was weak but not disastrous. Neither Williams nor Waller provided clear guidance on Friday on the pressing question of a 25 basis point cut versus a 50 basis point cut on 18 September, but they both gave relatively benign assessments of the economy, which in my view strongly points to a 25 basis point cut.’ Sixty-five of the 95 economists surveyed believe the Fed will cut rates twice more this year, by 25 basis points in November and December, following next week's meeting. Last month, 55 of 101 economists surveyed said the same.