Interest rates are headed down again next year, according to the latest American Banker yield and rate survey. The biggest question seems to be how far.

The consensus expectation of economists queried for the new survey is that by this time next year the Federal Reserve will probably have sliced the overnight federal funds rate by another half percentage point, to 4.25%. A few think the Fed will not go that far, but others think the reduction could be deeper, with the central bank cutting the rate to 3.75%, from the current 4.75%, to counter an economic slowdown.

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