Wells Fargo predicts that as 2025 approaches, the Federal Reserve (Fed) may adopt a slower pace of rate cuts, potentially cutting rates once every two policy meetings. While Wells Fargo's team forecasts three rate cuts in 2025, this is seen as a more moderate approach compared to the previous cycle of rapid rate-cutting. Market expectations are currently for the Fed to cut interest rates twice in 2025, with other major institutions like Morgan Stanley and JPMorgan Chase sharing a similar view. The Federal Reserve's updated economic projections, expected on December 18, could provide more clarity on the projected path for monetary policy. Societe Generale, on the other hand, predicts that while the Fed may continue cutting short-term interest rates, a combination of financial and economic pressures will push longer-term rates higher.



Other News from Today