Wells Fargo’s senior economist, Sarah House, said that there might be a slowdown in interest rate cuts in the future, and the Federal Reserve may cut rates every other meeting. The team expects the Fed to cut rates three times in 2025. Wall Street economists agree that the current fast pace of rate cuts won’t continue.
According to Bloomberg data, the market expects the Federal Reserve to cut rates about twice in 2025. The Fed will share updated forecasts on December 18. Economists from Morgan Stanley and JPMorgan Chase & Co. have similar thoughts about the Fed’s rate cut path, with the federal funds rate staying between 3.5%-3.75% until the end of 2025.
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