Goldman Sachs and Wells Fargo expect the Federal Reserve to cut interest rates twice this year

ChainCatcher news, the market widely expects that Trump's tariff policy will push up inflation and increase the difficulty for the Federal Reserve to continue controlling inflation. Goldman Sachs and Wells Fargo expect the Federal Reserve to cut interest rates twice this year, while Morgan Stanley joins Barclays and Macquarie in predicting that the Federal Reserve will only make one 25 basis point cut this year, citing the uncertainty brought by President Trump's tariff policy.

The Federal Reserve also maintained its benchmark overnight interest rate in the range of 4.25%-4.50% at its policy meeting in January. Federal Reserve Chairman Powell stated that further reductions in borrowing costs now depend on whether the Federal Reserve can make further progress in reducing stubbornly high inflation.