Barclays economists adjusted their forecasts for Fed policy based on June inflation data released this week and a gradual cooling in the labour market. They now believe the Fed will cut interest rates for a second time in December, on top of September's cut. Marc Giannini and Jonathan Millar, economists at Barclays, said in a research note: "We also believe the FOMC's growing belief in the restrictive stance of monetary policy should further persuade it to cut rates in September and December."