According to Odaily, analysts from Citi Research predict that the Federal Reserve will commence significant rate cuts in the next few months, continuing until the summer of 2025. This forecast was made last week, citing new signs of economic slowdown as the reason for the anticipated action.
The analysts believe that the Federal Reserve will start reducing the rates by 25 basis points at each meeting from September 2024, resulting in a total of eight rate cuts by July 2025. This would lower the benchmark interest rate by 200 basis points, bringing it down from the current 5.25%-5.5% to 3.25%-3.5%. The rate is expected to remain unchanged for the rest of 2025.
This prediction comes as a response to the emerging signs of an economic slowdown, which has led to the anticipation of these rate cuts. The Federal Reserve's actions are seen as a measure to stimulate the economy and prevent further deceleration. The impact of these rate cuts on the economy and the financial markets will be closely watched by investors and analysts alike.