According to a CNBC survey, Wall Street is still predicting that the Federal Reserve will lower interest rates twice in 2025, aligning with the central bank's own forecasts and market expectations. However, confidence has slipped since the last survey, with only 65% of respondents believing in rate cuts compared to 78% previously. Wall Street experts are divided on how President Trump's fiscal decisions, such as tariffs and tax reforms, will impact the US economy. Some economists believe Trump's policies will increase inflation and hurt economic growth, while others think deregulation could lead to growth. The survey also showed that 64% of respondents expect Trump's policies to increase inflation and 60% expect them to boost growth. However, 32% believe the policies could have a negative impact on economic expansion. Forecasts for the consumer price index rose to 2.7% for 2025 and GDP growth expectations increased to 2.4%. The probability of a recession in the next 12 months fell to 23%. The survey also found that only 36% of respondents believe Trump will respect the Fed's independence, down from 56% in December.



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