Barclays Signals September Fed Rate Cut After Powell’s Labor Market Warning

A Clear Shift Toward Rate Cuts

Barclays, alongside BNP Paribas, has revised its forecast, now expecting the Federal Reserve to implement a 25-basis-point rate cut in September, followed by another in December this year. This represents an important pivot in monetary policy prompted by Fed Chair Jerome Powell’s remarks at the Jackson Hole symposium, where he highlighted growing downside risks to the labor market.