Fed is unlikely to cut rates in 2025 due to high inflation, potential rate hikes

From Investing.com: 2025-01-15 01:53:00

The market is showing signs that a rate cut in 2025 may not be the best move, with inflation remaining high. Factors like labor markets, consumer spending, and expectations point to potential rate hikes instead. The Fed’s dual mandate of supporting the economy and keeping interest rates low may be difficult to balance given the current economic trends. Oil prices are on the rise, which could further drive inflation gains in Q1. The 10-year Treasury yield is also adjusting to a higher-for-longer-than-expected environment, signaling a potential trend of rising yields.



Read more at Investing.com: Why the Fed is Unlikely to Cut Rates in 2025 Despite Market Hopes