The FED made its first rate cut in September by 50 basis points and began a rate reduction cycle.
At this point, the FED, which made its second interest rate cut yesterday, reduced the rate by 25 basis points yesterday.
Following the FED’s decision yesterday, British bank Barclays revised its forecast and said it expects the FED to cut interest rates twice in 2025.
Accordingly, Barclays predicts that the Fed will cut interest rates twice in 2025, each by 25 basis points.
Barclays economists, who had previously predicted the Fed would make three rate cuts, revised their forecast downward due to the tariff hikes and tighter immigration regulations that would follow Trump’s election.
“The Fed needs to continue to send the message that it is independent of the government and will control inflation if it gets too high. The Fed will do whatever is necessary without any outside influence or political clout,” said Michael Pond of Barclays.
*This is not investment advice.
