According to PANews, interest rate derivatives traders now anticipate that the benchmark interest rate will drop to approximately 2.75% by the end of next year, down from the current rate of around 5.25%. This projection implies ten rate cuts, each by 25 basis points. The Federal Reserve is likely to implement such measures only in the event of an economic recession. While few on Wall Street foresee an imminent recession, most agree that the risk of an economic downturn is higher now compared to several months ago.
