Wall Street Fed Watchers Dial Back 2025 Rate-Cut Expectations
- Barclays, TD see chance Trump policies will stoke inflation
- Goldman Sachs cites Powell’s comments on Thursday’s cut
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Economists and strategists across Wall Street have dialed back their expectations for US interest-rate cuts next year based on this week’s presidential election of Donald Trump and comments by Federal Reserve boss Jerome Powell.
Fed policymakers lowered their target for the overnight lending rate Thursday by a quarter percentage point to 4.5%-4.75% and remain widely expected to do so again at their last meeting of the year on Dec. 18. But a handful of banks that previously looked for the cuts to continue for at least the first several of the Fed’s eight meetings of 2025 scrapped that view this week.