Barclays now expects two interest rate cuts from the Fed within this year.

Foreks - Barclays has increased its expectations for interest rate cuts from the Fed this year, indicating that labor market conditions continue to soften despite tariff uncertainties. The bank announced it anticipates two rate cuts of 25 basis points each in June and September. Previously, it had only predicted a 25 basis point cut in June.

Barclays analysts stated, “The softer labor market leads us to add another quarter-point rate cut.” They emphasized that despite high inflation, interest rate cuts will persist, reflecting a shift in the economic landscape and signaling potential changes for investors and the financial markets.