●OECD predicts Fed rates will gradually fall to 3.25%-3.5% by late 2026
●BOE Governor Bailey explicitly warns of increased financial stability risks
●Updates signal a cautious long-term outlook for global monetary policy and stability
The OECD has released a forecast predicting that the Federal Reserve will gradually lower its key interest rate to a range of 3.25% to 3.5% by the end of 2026. The projection suggests a steady easing path rather than immediate aggressive cuts.
Separately, Bank of England Governor Andrew Bailey stated that risks to financial stability have increased. These comments follow recent volatility surrounding the UK budget and have prompted market caution regarding the British Pound.