Goldman Sachs expects The Federal Reserve (FED) to cut interest rates 7 times next year

Jin10 data as of June 25th, Morgan Stanley expects that The Federal Reserve (FED) will cut interest rates seven times in 2026, starting from March 2026, with the Intrerest Rate eventually dropping to 2.5% to 2.75%. The current Federal funds Intrerest Rate set by The Federal Reserve (FED) is 4.25%-4.5%, which is 175 basis points higher than Morgan Stanley’s expected final Intrerest Rate (25 basis points * 7). According to The Federal Reserve (FED)'s June dot plot, The Federal Reserve (FED) anticipates two rate cuts in 2025, while Morgan Stanley expects no rate cuts in 2025; The Federal Reserve (FED) expects one rate cut in 2026, whereas Morgan Stanley predicts seven rate cuts in 2026.