Fed Holds Rates Steady
(Reuters) – Major brokerages, including BofA and Goldman Sachs, expect the U.S. Federal Reserve to hold rates steady in the upcoming January meeting after the central bank cut interest rates by a quarter of a percentage point at its December policy meeting.
Fed Chair Jerome Powell said more reductions in borrowing costs now hinge on further progress in lowering stubbornly high inflation, remarks that showed policymakers are starting to reckon with the prospects for sweeping economic changes under a Trump administration.
Forecasts from Major Brokerages for 2025
| Brokerage | Jan 2025 Rate Cut Estimates (in bps) | 2025 Fed Funds Rate |
|---|---|---|
| BofA Global | No rate cut | 3.75%-4.00% (end of June) |
| Barclays | No rate cut | 3.75%-4.00% (end of 2025) |
| Goldman Sachs | No rate cut | 3.50%-3.75% (through September 2025) |
| J.P. Morgan | No rate cut | 3.75% (through September 2025) |
| Morgan Stanley | No rate cut | 3.75% – 4.00% (through June 2025) |
| Nomura | No rate cut | 4.00%-4.25% (through end of 2025) |
| UBS Global | No rate cut | 3.00%-3.25% (through end of 2025) |
| Deutsche Bank | No Rate Cuts | 4.25%-4.50% |
| Societe Generale | No rate cut | 3.00%-3.25% (by early 2026) |
| ING | No rate cut | 3.75%-4.00% |
| Macquarie | No rate cut | 4.00%-4.25% |
| Peel Hunt | No rate cut | 3.50%-4.00% |
> *Note: UBS Global Research and UBS Global Wealth Management are distinct, independent divisions in UBS Group.
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