The survey shows that the Federal Reserve's September interest rate cut is a foregone conclusion, with at least one more rate cut before the end of the year

Almost all 107 analysts polled by Reuters believe the Federal Reserve will cut interest rates by 25 basis points on September 17 as weakness in the labour market outweighs inflation risks. Most expect further cuts next quarter. Stagnant job growth in August and a sharp downward revision to employment data for the 12 months to March prompted many economists to cut their forecasts and believe the Fed could cut rates more than previously expected. Markets have fully digested September's rate cut and now expect three rate cuts this year, up from just two a few weeks ago. Michael Gapen, chief US analyst at Morgan Stanley, said: "The Fed now has four straight months of evidence of slowing labour demand and the trend appears to be more sustained... In short, we should ignore current inflation levels for now and ease policy to support the labour market. However, we think a 25 basis point cut in September is more likely than a larger cut."