Deutsche Bank now expects the Federal Reserve to cut interest rates by 25 basis points in December, reversing its earlier projection that there would be no rate cuts at all in 2025:
- then another two cuts of 25 basis points in Q1 2026
- terminal rate 3.5%-3.75%
Nearer term, this week DB say:
- “Powell’s speech will be most in focus” (its on Wednesday, April 16, 2025 at 1730 GMT / 0930 US Eastern time)
- Empire State (Tuesday, April 15, 2025 1230 GMT / 0830 US Eastern time) and Philadelphia Fed manufacturing surveys (Thursday, April 17, 2025 at 1230 GMT / 0830 US Eastern time)
- DB say they “expect both series to take a significant hit” from Trump’s policies due to deteriorating business sentiment
This article was written by Eamonn Sheridan at www.forexlive.com.