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Federal Reserve Likely to Cut Interest Rates Twice in 2025, Says Expert
John Luke Tyner, head of the fixed income department at Aptus Capital Advisors, stated that the Federal Reserve is almost certain to cut interest rates twice in 2025. This expectation arises as the Fed shifts its focus to the labor market and observes signs of easing price pressures. However, the sustainability of the rate-cutting cycle is expected to be questioned as 2026 approaches.
Market projections suggest that the Federal Reserve will reduce interest rates approximately three times in 2026, potentially lowering the federal funds rate to around 3%. As the effects of the easing policy gradually take hold, there is concern that the economy might accelerate again. Additionally, factors such as energy prices could bottom out and rise, potentially causing inflation data to rebound.
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