Institution: The market's pricing for the Federal Reserve (FED) to cut interest rates in 2025 seems reasonable.

CoinVoice

CoinVoice has learned that Noah Weiss, senior portfolio manager at Allspring Global Investments, stated that the market’s expectation for the Federal Reserve to cut interest rates three to four times in 2025 and five to six times by July 2026 is reasonable. “It’s not because this is our expectation, but because it strikes a delicate balance between two very different but highly plausible scenarios.” In the first scenario, inflation remains high while the economy avoids a recession, meaning the Federal Reserve will cut rates more slowly than the market currently expects. The other scenario involves an economic downturn and declining inflation, which could lead to five to six rate cuts by the end of 2025 and possibly eight or more cuts by July 2026, depending on the severity of the recession.

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