Bank of America, Morgan Stanley, and Standard Chartered Revise Forecasts for December 2025 Fed Rate Cut
Standard Chartered joins other major banks in projecting a 25 basis point Federal Reserve rate cut in December 2025, highlighting evolving consensus among financial institutions.
Standard Chartered has updated its forecast to predict a 25 basis point cut by the Federal Reserve in December 2025, reversing its earlier view of no reduction. This adjustment aligns with prior projections from Bank of America and Morgan Stanley, both of which anticipated the same level of easing in December 2025 followed by further cuts in 2026. Bank of America recently indicated markets could begin pricing in an even earlier January cut. The shift reflects changing sentiment among major financial institutions regarding the timing and scale of Fed monetary policy adjustments.
- Basis Point: A unit equal to one-hundredth of a percentage point, used to describe changes in interest rates or yields.
- Federal Reserve: The central banking system of the United States, responsible for setting monetary policy, including interest rates.