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Deutsche Bank Now Predicts Two Fed Rate Cuts in 2025

BNP Paribas and Barclays revise their US Federal Reserve rate cut expectations, now predicting two cuts in September and December 2025, aligning with recent updates from Deutsche Bank.

Summary

BNP Paribas and Barclays now expect the US Federal Reserve to cut interest rates by 25 basis points in both September and December 2025. This is a shift from their previous forecast of no rate cuts in 2025, aligning with Deutsche Bank's updated forecast of two rate cuts during the year.

Terms & Concepts
  • Basis Point: A unit equal to 1/100th of a percentage point, commonly used to describe changes in interest rates or yields.
  • Interest Rate Cut: A monetary policy action where a central bank lowers its benchmark interest rate to stimulate economic activity.
  • Federal Reserve: The central banking system of the United States, responsible for setting monetary policy, including interest rates.