While the FED has been pausing interest rate cuts since January, a rate cut is now considered inevitable. At this point, it seems certain that the FED will not cut interest rates at next week's meeting. While it is unlikely that interest rates will remain unchanged, a 25 basis point cut by the FED is priced at 88.1 percent, and a 50 basis point cut is priced at 11.9 percent. While the Fed is expected to continue cutting interest rates from now on, Wells Fargo predicted that the Fed will cut interest rates five times by June 2026. Wells Fargo analysts said they expect the Fed to enter a steady easing cycle, implementing five interest rate cuts by mid-2026. The bank included the following statements in a note published on Wednesday: We expect the Fed to cut the federal funds rate by 25 basis points over its next three meetings, bringing its target range to 3.50%-3.75% by year-end. Two more quarter-point cuts are expected at the March and June meetings next year, in which case the final interest rate will be 3.00%-3.25%. “The U.S. labor market is in an unstable position in our view, and this is the primary driver of our more moderate monetary policy outlook,” Wells Fargo analysts said, noting that the more dovish outlook on Fed rate cuts is largely due to the weakening labor market. *This is not investment advice.