British Giant Barclays Changed Its FED Interest Rate Forecast After Yesterday's Decision!
British bank Barclays revised its forecast, saying it expects the Fed to cut interest rates twice in 2025.
The FED made its first rate cut in September by 50 basis points and began a rate reduction cycle.
At this point, the FED, which made its second interest rate cut yesterday, reduced the rate by 25 basis points yesterday.
Following the FED's decision yesterday, British bank Barclays revised its forecast and said it expects the FED to cut interest rates twice in 2025.
Accordingly, Barclays predicts that the Fed will cut interest rates twice in 2025, each by 25 basis points.
Barclays economists, who had previously predicted the Fed would make three rate cuts, revised their forecast downward due to the tariff hikes and tighter immigration regulations that would follow Trump's election.
“The Fed needs to continue to send the message that it is independent of the government and will control inflation if it gets too high. The Fed will do whatever is necessary without any outside influence or political clout,” said Michael Pond of Barclays.
*This is not investment advice.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Stablecoin Liquidity Hits $204B, Hints at Possible Bitcoin Rally
Trump-imposed tariffs to begin Tuesday as Mexico, Canada announce retaliatory response
President Trump on Saturday signed an executive order imposing 25% tariffs on imports from Canada and Mexico, with a 10% tariff on Canadian energy and oil, and an additional 10% tariff on China.The implementation of the tariffs was delayed to Tuesday at 12:01 am.Mexico’s President Sheinbaum announced the country would implement both tariff and non-tariff retaliatory measures, while Canadian PM Trudeau said Saturday night Canada would implement 25% tariffs on a swath of American goods in response.