Fed's Interest Rate Cuts Expected To Slow Down In 2025

According to Odaily, Wells Fargo's Senior Economist Sarah House has indicated that as we move into 2025, the pace of future interest rate cuts by the Federal Reserve is likely to decelerate. House suggests that the Fed might opt to reduce rates at every other meeting. Her team anticipates that the Federal Reserve will implement three rate cuts throughout 2025. While policymakers have differing views on the specifics, there is a general consensus among Wall Street economists that the current rapid pace of rate reductions by the Fed is unlikely to persist. Additionally, data from Bloomberg suggests that the market currently expects the Federal Reserve to cut interest rates approximately twice in 2025. The Federal Reserve is scheduled to release its updated forecasts on December 18. This anticipated slowdown in rate cuts reflects a broader expectation of a more measured approach by the Fed as it navigates the economic landscape in the coming year.