ICBC International Chief Economist: Expects the Federal Reserve to cut interest rates by 50-75 basis points in 2025

ChainCatcher news, according to Jinshi reports, Chief Economist Cheng Shi of ICBC International stated at the 2025 China Chief Economist Forum Annual Meeting that the adjustment path of U.S. monetary policy in 2025 will be a "first urgent, then gradual" process. Currently, it is expected that the Federal Reserve will cut interest rates by about 50-75 basis points in 2025.

Cheng Shi indicated that the re-inflation risks faced by the U.S. can be viewed from two dimensions: first, the current U.S. inflation is in a zone where it is easy to rise but difficult to fall, and there is very little room for further decline, making it quite challenging. In fact, there are many potential factors that could drive U.S. inflation upward. Second, the current market has formed an upward expectation for U.S. inflation, and inflation expectations tend to be self-fulfilling, which will create substantial upward pressure on inflation.