BCA Predicts Greater Rate Cuts Than Fed's 2025 Forecast

According to Odaily, the Federal Reserve's median forecast for interest rate cuts in 2025 is just 50 basis points. However, the Business Council of Canada (BCA) anticipates more significant reductions. BCA analysts suggest in a report that inflation is likely to be lower than the Fed's 2025 projections, while the unemployment rate may exceed the Fed's expectations. They argue that more than a 50 basis point easing will be necessary. The Fed predicts an unemployment rate of 4.3% by the end of 2025, which would require significant improvements in labor market momentum, a shift that BCA considers unlikely.