Rate cuts may slow down in 2025 due to uncertainty around Trump's economic proposals

From Zacks Investment Research: 2024-11-29 15:26:16

Growing uncertainty around President-elect Trump’s economic proposals and their impact on inflation has led the market to increase bets on the Fed adopting a more gradual pace of interest rate cuts in 2025, opting for a cautious approach. Economists warn that Trump’s promises could drive prices upward, leading to elevated interest rates. The Fed is set to lower rates in December but implement smaller cuts in 2025. Inflation concerns have risen as the PCE price index rose 0.2% in October. Technology stocks faced a decline on Thanksgiving amid worries of a cautious Fed. Investors may consider value ETFs, dividend ETFs, and consumer staples ETFs as hedges against uncertainties.



Read more at Zacks Investment Research: Rate Cuts to Slow Down in 2025? ETFs to Add to Your Portfolio – November 29, 2024