Economists expect Fed to cut rates next, but slow pace in 2025: Bloomberg survey
) week's Federal Reserve widely expected Federal Reserve rate cut is now expected to be accompanied by a less dovish outlook of just three rate cuts for 2025, according to a survey of economists conducted by Bloomberg.
The pace of rate cuts, however,, is expected to slow in 2025, with economists predicting just three reductions next year, down from previous expectations. This shift comes as progress on cooling inflation toward the Fed's 2% target has been less robust than anticipated. The incoming Trump administration's policy proposals, including mass deportations, new tariffs, and tax cuts, are also expected to impact the Fed's rate decisions. The majority of economists surveyed believe these policies will lead to fewer rate cuts in 2025 than previously thought.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.
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