Here’s Why Fed Rate Cuts Are Likely Soon, Even Without a U.S. Recession

Growing speculation suggests the Federal Reserve might cut interest rates soon. With current Treasury yields around 5% and the federal funds rate at 5.25-5.5%, analysts predict the first cut could occur by mid-next year. UBS expects the rate to drop below 3% by the end of next year, and Goldman Sachs sees it falling just below 4%. These cuts may be accelerated by a potential recession and the need to balance rising real interest rates and support economic growth.