Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Economy

Factbox-Most brokerages stick to their Fed rate cut predictions after CPI data

admin by admin
January 16, 2025
in Economy
0
Factbox-Most brokerages stick to their Fed rate cut predictions after CPI data
0
SHARES
3
VIEWS
Share on FacebookShare on Twitter

(Reuters) -Major brokerages stuck to their predictions on interest rate cuts in 2025, after U.S. inflation data came in line with expectations on Wednesday, easing investor nerves, following a surprisingly strong U.S. employment report last week.

Wells Fargo (NYSE:WFC), however, lowered its forecast to two rate cuts by the Federal Reserve from three after U.S. consumer price index (CPI) showed a marginal rise to 0.4% last month and advanced 2.9% on an annual basis. Economists polled by Reuters had forecast the CPI gaining 0.3% and rising 2.9% from a year earlier.

Market participants are betting on a 34.5 basis point cut by the end of this year, as per data compiled by LSEG.

After cutting rates by a quarter of a percentage point at the Dec. 17-18 meeting, Fed Chair Jerome Powell said policymakers could now be “cautious” about further reductions.

Here are the forecasts from major brokerages after inflation data:

Rate cut estimates (in bps)

Brokerages Jan 2025 2025 Fed Funds Rate

No. of cuts

in 2025

BofA Global No rate cut No rate cut 4.25-4.50%(end of

Research 0 December)

Barclays (LON:BARC) No rate cut 25 (in June) 4.00-4.25% (end of

1 2025)

BNP Paribas (OTC:BNPQY) No rate cut No rate cut 4.25-4.50%(end of

0 December)

Goldman Sachs No rate cut 50 (June and 3.75-4.00% (through

December) 2 December)

J.P.Morgan No rate cut 50(June and 3.75-4.00% (through

September) – September 2025)

Morgan Stanley (NYSE:MS) No rate cut 50 (through 3.75-4.00% (through

June 2025) 2 June 2025)

Deutsche Bank (ETR:DBKGn) No rate cut No Rate Cuts 4.25-4.50% (end of

0 2025)

ING No rate cut 75 3.50-3.75%

3

UBS Global No rate cut 50 3.75-4.00% (end of

Wealth – 2025)

Management

Citigroup (NYSE:C) No rate cut 125 (starting 3.00-3.25% (end of

in May) 5 2025)

Macquarie No rate cut 25 4.00-4.25%

1

Berenberg No rate cut No rate cut 4.25-4.50% (end of

0 2025)

No 50

Wells Fargo rate cut (September and 2 3.75-4.00% (end of

December) 2025)

Nomura No rate cut – –

1

Here are the forecasts from major brokerages before inflation data:

Rate cut estimates (in bps)

Brokerages Jan 2025 2025 Fed Funds Rate

BofA Global No rate cut No rate cut 4.25-4.50%(end of

Research December)

Barclays No rate cut 25 (in 4.00-4.25% (end of

June) 2025)

Goldman Sachs No rate cut 50 (June 3.75-4.00% (through

and December)

December)

J.P.Morgan No rate cut 75(starting 3.50-3.75% (through

in June) September 2025)

Morgan Stanley No rate cut 50 (through 3.75-4.00% (through

June 2025) June 2025)

Deutsche Bank No rate cut No Rate 4.25-4.50% (end of

Cuts 2025)

ING No rate cut 75 3.50-3.75%

UBS Global No rate cut 50 3.75-4.00% (end of

Wealth 2025)

Management

Citigroup No rate cut 125 3.00-3.25% (end of

(starting 2025)

in May)

Macquarie No rate cut 25 4.00-4.25%

Berenberg No rate cut No rate cut 4.25-4.50% (end of

2025)

Scotiabank (TSX:BNS) No rate cut 50 3.75-4.00% (end of

2025)

Wells Fargo No rate cut – –

* UBS Global Research and UBS Global Wealth Management are distinct, independent divisions in UBS Group

This post appeared first on investing.com

Previous Post

Policy uncertainty clouding the US economic outlook for 2025, Wells Fargo says

Next Post

2025 could be a peak year for Nvidia stock: analyst

admin

admin

Next Post
2025 could be a peak year for Nvidia stock: analyst

2025 could be a peak year for Nvidia stock: analyst

Trending News

Europe’s banks may lack enough loan loss cover for property slump, says Moody’s

Europe’s banks may lack enough loan loss cover for property slump, says Moody’s

September 19, 2024
Italian parliament gives final approval to government’s 2025 budget

Italian parliament gives final approval to government’s 2025 budget

December 28, 2024
Prosus’ $4.3B takeover bid fuels a 54% surge in Just Eat stock

Prosus’ $4.3B takeover bid fuels a 54% surge in Just Eat stock

February 24, 2025
Subscribe to Insightful Word


    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025
    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    June 26, 2025
    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    June 26, 2025

    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025

    Latest News

    • S&P 500 nears record high despite headwinds: key drivers behind the surprise rally
    • Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high
    • S&P 500 nears record high as Wall Street opens higher amid tech momentum

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.