Barclays now expects the U.S. Federal Reserve to deliver two quarter-point interest rate cuts in June and September, the Wall Street brokerage said on Thursday, citing softer labor market conditions amid tariff uncertainty.

Barclays has lowered its expectations; now, it thinks the Federal Reserve will cut interest rates twice this year instead of once. This is due to unclear trade policy and the weakening U.S. job market.

Barclays analysts have reportedly increased their 2025 rate cut expectations to two from one amid softer U.S. labor market conditions and trade policy uncertainty. According to a Reuters report, Barclays expects two 25 basis points rate cuts each in June and September.