OECD Expects Three More Interest Rate Cuts

SadaNews - The OECD has indicated that the Federal Reserve may cut interest rates three more times despite U.S. inflation surpassing targets, amid expectations of an economic and labor market slowdown.

The Paris-based organization currently predicts that U.S. interest rates will decline to a range between 3.25% and 3.5% by spring next year, after the Fed decided last week to reduce borrowing costs by 25 basis points.

The organization expects U.S. economic growth to slow to 1.8% this year, down from 2.8% in 2024, before further slowing to 1.5% in 2026.

Despite the largest economy in the world showing relative resilience in the face of rising tariffs, this is partially attributable to very strong investment in the information technology sector, including artificial intelligence.