Trade war shakes Deutsche Bank's hawkish view on the Fed, rate cuts are no longer impossible this year

Odaily Planet Daily News Deutsche Bank's economic team holds the most hawkish view on Wall Street about the Fed's policy in 2025, predicting that the Fed will not cut interest rates this year. While this is still the official position of the team, Chief U.S. Economist Matthew Luzzetti acknowledged that the impact of Trump's new tariffs could jeopardize this forecast. "You have definitely begun to see some negative effects of trade uncertainty in the economic data," Luzzetti said. "If this impact expands and is reflected in weak labor market data, the Fed may cut interest rates this year." However, Luzzetti said that Deutsche Bank wants to see how long the tariffs will last before changing its forecast for the Fed. (Jinshi)