As the U.S. Federal Reserve continues to make moves to support the economy, most major brokerages are predicting a cumulative 50 basis points reduction in interest rates in the upcoming November and December meetings. This comes after an unexpected rate cut in the September meeting, where Fed Chair Jerome Powell described it as a necessary "recalibration" due to declining inflation.
The forecasts from major brokerages show varying estimates for the rate cuts, with expectations ranging from 50 to 125 basis points by the end of 2025. Analysts are closely monitoring the Fed's decisions to stay ahead of any potential weaknesses in the job market, despite the overall strength of the economy.
It's important for investors to pay attention to these forecasts as they can have a significant impact on various financial instruments and markets. Lower interest rates can stimulate economic growth but may also lead to increased inflation. Understanding these changes and how they can affect your investments is crucial for making informed decisions in today's volatile market.