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Analyst: The Federal Reserve may pause adjustments and is expected to cut interest rates three times next year
Editor
2024-12-04 16:03 2,044
Golden Finance reported that Lindsey Piegza, an economist at investment bank Stifel, said that the Federal Reserve is about to suspend policy adjustments because President Waller’s recent remarks reflect that stricter standards in this regard are taking shape. Fed officials are increasingly focused on whether economic data exceeds expectations rather than just on a strong economy. If the economy continues to show significant solidity next year, the Fed may face a challenging situation regarding potential interest rate cuts. I expect three more cuts next year to bring rates closer to neutral, taking rates to 3.75% by the third quarter, which is a reasonably neutral level. As for this year, if the December data is as expected, I believe the Fed will do a third round of rate cuts.
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