TechFlow reported on December 27 that according to Jinshi, economists at Paidenreiger Asset Management said in a report on the economic outlook that as inflation falls and unemployment rises, the Federal Reserve may cut interest rates by more than market expectations in 2025.
They said that the core inflation measure preferred by the Federal Reserve may fall below 2% at some point in 2025, while the U.S. unemployment rate may reach 4.4% or higher by the end of 2025. They also said that the Federal Reserve could "easily" cut interest rates by more than the 35 basis point cut currently expected by the U.S. money market in 2025. The optimal level of the federal funds rate would be 3.3%, which means at least four rate cuts in 2025.