US Inflation vs. Federal Reserve Rates: Summary of Investment Bank Expectations 2025
The Fed's rate-setting committee lineup is about to be replaced, and at the same time, renewed inflation concerns have complicated the central bank's decision-making. The Federal Reserve cut its benchmark policy rate by 25 basis points earlier this month and hinted that it will only cut rates twice in 2025. Chairperson Powell made it clear that the central bank is entering a new phase in which future rate cuts are likely to be more gradual and depend on lower inflation. Except for seven Fed gove...
Capital Economics assessed that today's Fed rate decision was hawkish. "All things considered, we now expect the Fed to end this easing cycle earlier than before. We expect an additional 25 basis points of rate cuts at each meeting through May, with rates bottoming out between 3.50% and 3.75%, 50 basis points higher than our pre-election forecast.
According to LSEG data, after the Federal Reserve's interest rate decision, U.S. interest rate futures prices reflect the expectation of another 25 basis points in December.
Traders in Fed interest rate futures contracts upped their bets on further Fed rate cuts on Tuesday after a government report showed fewer job openings last month in a possible sign of a further cooling in the job market. Interest rate futures contracts showed growing confidence in the Fed cutting rates by 25 basis points at each of its next two meetings and further cuts next year, with traders lowering their bets on a November pause to about 2 per cent.
After the Federal Reserve's interest rate decision was announced, U.S. stocks rose more than 1%, the Nasdaq rose more than 1%, the S & P 500 rose 0.72%, and the Dow rose 0.74%.
According to the Bitfinex Alpha report, the Federal Reserve is expected to cut interest rates by 25 basis points, and BTC is exposed to volatility risks. Over the past week, BTC ETFs recorded a net inflow of $403.90 million, reversing a long-term outflow of funds.
UBS said it was closely monitoring data on retail sales and industrial production ahead of the Fed's interest rate decision, and that weakness could affect the Fed's decision to cut the federal funds rate by 50 basis points instead of 25 basis points. The bank said US inflation had slowed to the point where it could cut rates. It outlined its "base case" of a 100 basis point cut for the rest of the year and 2025...
1. Levels of interest rates: The Reserve Bank of New Zealand unexpectedly cut interest rates by 25 basis points, reducing rates from 5.5% to 5.25%, the first rate cut since March 2020. 2. Interest rate outlook: The average official cash rate is expected to be 4.92% in the fourth quarter of 2024 and 4.62% in Quarter 1 2025. The average official cash rate is expected to decrease by 101 basis points by mid-2025. 3. Monetary policy: Monetary policy will need to remain restrictive for some time. The ...
According to The Information, a rate hike by the Federal Reserve could be a boon for stablecoin issuer Circle, but a rate cut could have an impact on it. With the looming threat of a rate cut by the Federal Reserve and the timing of the planned initial public offering still uncertain, Circle is looking for ways to expand its business. Circle's revenue is mainly derived from interest income from tens of billions of dollars in cash, U.S. Treasury bonds and other assets backing its popular USDC sta...
The Fed interest rate swap market is fully priced in three rate cuts before the end of the year.
The US Federal Reserve's interest rate decision (ceiling) until July 31 is 5.5%, expected to be 5.50%, and the previous value is 5.50%.
Australia to May 7, the Reserve Bank of Australia interest rate decision of 4.35%, expected 4.35%, the previous value of 4.35%.
1. Interest Rate Level: For the fourth time in a row, the Reserve Bank of Australia left its policy rate unchanged at 4.35%, in line with market expectations. 2. Forward Guidance: The forecast assumes interest rates remain at 4.35% until mid-2025, nine months longer than the February forecast. 3. Inflation Expectations: Short-term headline inflation is expected to rise and core inflation to slow more slowly, with nothing ruled out. 4. Economic Expectations: GDP growth is forecast to be 1.6% in D...