Barclays expects the Fed to deliver two 25 bps rate cuts each in September 2026 and March 2027 vs the prior forecast of cuts in June and September this year.

Barclays' revised outlook for the Fed's rate cuts reflects a shift towards a more gradual easing cycle, pushing anticipated cuts from mid-2023 to 2026 and 2027. This decision signals a more cautious approach to monetary policy, which could influence USD strength, market expectations for future rate paths, and overall market sentiment. Traders should watch for shifts in yields across fixed income markets as this new timeline suggests prolonged accommodative conditions.