Economist: The Fed's rate cut in 2025 may exceed market expectations
Odaily Odaily report: According to a report on the economic outlook by economists at Padellan Regal Asset Management, the Federal Reserve's rate cuts in 2025 may exceed market expectations as inflation declines and unemployment rises. They said the Fed's preferred core inflation indicator may fall below 2% at some point in 2025, and the U.S. unemployment rate may reach 4.4% or higher by the end of 2025. They also said the Fed could "easily" cut rates more than the 35 basis points currently priced in by the U.S. money market for 2025. The optimal level for the federal funds rate will be 3.3%, implying at least four rate cuts in 2025. (Jinshi)
