FED: FIVE INTEREST RATE CUTS OF 25 BPS EACH – COMMERZBANK

Economists at Commerzbank expect the Federal Reserve (Fed) to cut rates only five times by 25 basis points (bps) each cut.

Fed to adjust key rates

We do not expect the first rate cut until the June meeting and therefore one meeting later than previously assumed. 

Overall, we now expect five interest rate cuts of 25 bps each (previously 8). The Fed is likely to make three of these cuts this year and two next year. The key interest rate would then be 4.25%.