The majority of global fund managers predict that the Federal Reserve (Fed) will cut interest rates in 2025, according to a Bank of America survey. In February, 77% of fund managers expected a rate cut, with 46% predicting two cuts and 27% anticipating one. This comes as inflationary pressures continue to be a concern, with January's inflation figures surpassing expectations. The market responded with a decline in stock markets and higher borrowing costs, as investors worry that the Fed may keep rates high for longer than expected. Economists suggest that the inflation data reinforces the Fed's intention to slow or even end rate cuts in 2025.



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