OECD: Expects the Fed to "gradually" lower the key Intrerest Rate to 3.25% to 3.5%

On December 2, the OECD: The Fed is expected to “gradually” lower the key interest rate to 3.25% to 3.5% by the end of 2026. It raised the forecast for the U.S. economic growth rate in 2025 from 1.8% to 2%, and the forecast for the economic growth rate in 2026 from 1.5% to 1.7%. The OECD also stated that increasing tariffs in the U.S. will lead to a slowdown in global economic growth in 2026, and that U.S. fiscal policy is heading towards an “unsustainable path.” If trade barriers are further increased, the global economic slowdown will become more severe. In addition, if the investment boom in artificial intelligence expands, there will be upward potential for global economic growth. ( Jin10 )