From NASDAQ.: 2025-04-26 10:05:00

The U.S. Federal Reserve has reduced the federal funds rate by a total of 100 basis points in 2024 to combat high inflation. The CPI is nearing the Fed’s 2% target, prompting forecasts for more rate cuts this year due to global trade tensions.

Tariffs imposed by President Trump are complicating interest rate decisions, with CPI data showing a slower increase in March. Tariffs on imported goods and potential recession risks have led to adjustments in Wall Street’s 2025 forecast for the federal funds rate, with four rate cuts expected.

Interest rate cuts can lead to stock market volatility, with the S&P 500 down despite previous rate cuts. The Fed’s history of late rate adjustments and the potential impact of recessions on stock prices are important factors to consider in the current economic climate.



Read more at NASDAQ.: The Tariff Turmoil Could Trigger 4 Interest Rate Cuts in 2025 — Here’s What It Means for Stocks