(Reuters) – Major brokerages maintained their predictions for a slower pace of interest-rate cuts by the U.S. Federal Reserve after the central bank kept its benchmark interest rate unchanged on Wednesday.
The Fed left its benchmark overnight interest rate in the 4.25-4.50% range, with Chair Jerome Powell describing the current uncertainty as “unusually elevated,” citing challenges in making new economic projections due to recent Trump administration policy changes.
The Fed also forecast slower economic growth and higher inflation.
Currently, traders expect two rate cuts of 25 basis points each for the year, according to data compiled by LSEG. The Federal Open Market Committee (FOMC) is scheduled to meet again on May 6-7.
Here are the forecasts from major brokerages following the March meeting:
Total No. of Fed Funds
Brokerage cuts in 2025 cuts in 2025 Rate
50 2 (25
Goldman Sachs bps bps each in June and 3.75-4.00% (through
December) December)
50 2 (25
J.P.Morgan bps bps each in June and 3.75-4.00% (through
September) September 2025)
125bp 5
Citigroup (starting in may) 3.00-3.25% (end of
2025)
50 2 (25
Barclays bps bps each in June and 3.75-4.00% (through
September) December)
No 0
Berenberg rate cut 4.25-4.50% (end of
2025)
No 0
Nomura rate cut 4.25-4.50% (end of
2025)
50 2 (25
Barclays bps bps each in June and 3.75-4.00% (through
September) December)
75 3 (25
HSBC bps bps each in June, 3.50-3.75% (end of
September and 2025)
December)
50 2 (H2
ING bps 2025) 3.75-4.00% (end of
2025)
(Compiled by the Broker Research team in Bengaluru; Editing by Anil D’Silva)
Comments