The pandemic has faded, and the global inflation nightmare that followed has been stabilizing until recently. However, the situation is changing. The EU is again concerned about rising inflation, while the US is starting to see increases in inflation, which does not bode well for 2025. What do experts think?
Bank of America’s 2025 Predictions
When discussing the economy, examining the insights from Bank of America can be quite beneficial. Understanding macroeconomics is complex, and the last few years have certainly been intriguing. We previously heard Powell expressing regret for not implementing rate cuts in July.
Subsequently, we observed a reduction of 100 basis points. The process that began with a 50 basis point cut was influenced by Powell’s July regret. By December, Powell suggested that due to the risks of halting the decline in inflation and strong employment, they might need to refrain from further rate cuts. The Fed’s members’ dot plot indicated a 50 basis point cut scenario for 2025.
Today, robust employment data is leading markets to anticipate one rate cut this year. The rapidly changing situation is mirrored in the Bitcoin 
$94,262 price graph as well. Let us hope the upcoming inflation data will favor the cryptocurrency markets. If inflation remains high next week, risk markets might face a more significant blow.
Goldman Sachs’ 2025 Predictions
Goldman Sachs expects the Fed to implement a total rate cut of 50 basis points this year following recent data. However, some believe that the data collected on the year’s first and last days are insufficient to create broad projections.
Nonetheless, the expectation of a 50 basis point cut for this year does not negate the downward revision from previous estimates of 75 basis points.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
