Analyst: The next rate cut window for the Federal Reserve may be in May or later
ChainCatcher news, Matthias Scheiber, head of Allspring's Global Multi-Asset Solutions team, stated that in light of growing concerns about tariffs and their potential impact on U.S. economic growth and inflation, the Federal Reserve has adopted a widely expected 'wait-and-see' approach to interest rates. We believe that the next possible window for the Fed to cut rates will be in May or later, and some market analysts now expect three rate cuts in 2025, instead of the two cuts anticipated a month ago.The interest rate market currently expects the Fed to lower rates to around 3.75% by the end of the year. This largely depends on how the balance between inflation and growth tilts, as the economy may continue to weaken, and the Fed may need to cut rates more aggressively than expected.