Barclays Economists Adjust Federal Reserve Rate Cut Projections

Barclays economists revised their prediction for the first U.S. Federal Reserve interest rate cut to September instead of June, due to inflation concerns heightened by the Iran conflict. They also delayed the anticipated December rate cut to March 2027, forecasting a single rate reduction this year, followed by another in 2027.

On Friday, Barclays economists announced a revision in their expectations for the U.S. Federal Reserve's interest rate cuts, delaying the first move to September from June this year.

Citing a stronger inflation outlook and potential increases in headline price pressures linked to the ongoing conflict with Iran, the analysts adjusted their timeline.

The economists now foresee just one 25-basis-point cut in 2023, with a follow-up reduction planned for March 2027, shifting from a previously anticipated December cut.