Analysis: The Fed may be disappointed with the expectations of interest rate cuts in 2026.

Odaily News The interest rate market is pricing in a series of long-term rate cuts by the Fed starting this month, with the Fed's target rate range expected to fall below 3% by the end of 2026. According to Neil Dutta of Renaissance Macro, this anticipated significant rate cut path is unlikely to be reflected in the Fed's dot plot in September, creating a stark contrast between the Fed's trajectory and market expectations. Dutta wrote, “With the FOMC meeting approaching, it is difficult to see how the Fed will meet expectations.” For the September dot plot to align with market predictions, eight Fed officials would need to lower their 2026 dot plot rate to 3% or lower. (Jin10)