Wells Fargo(US:WFC) Sou Hu Cai Jing·2025-09-10 11:35Core Viewpoint - Wells Fargo anticipates that the Federal Reserve will lower interest rates five times before mid-2026, with each cut being 25 basis points [1] Economic Outlook - The bank expects the next three meetings to result in consecutive rate cuts, bringing the rate down to a range of 3.50% to 3.75% by the end of the year [1] - Further cuts are projected in March and June 2026, reducing the rate to a range of 3.00% to 3.25% [1] Labor Market and Inflation - The labor market shows signs of weakness, with only 29,000 average job additions in August and an unemployment rate rising to 4.3% [1] - Inflation remains a challenge, with core PCE increasing by 2.9% year-over-year, although inflation expectations are stable [1] Economic Growth Projections - The likelihood of a recession in the U.S. next year has been raised to 35% [1] - However, stronger economic growth is anticipated in the coming years, with GDP growth projected to reach 2.4% by 2026, driven by fiscal stimulus and rate cuts [1]