Recent Fedspeak Confirms Intentions for Rate Cuts to Continue: BofA
Bank of America reports that recent Federal Reserve speakers suggest continued rate cuts are likely at the final two meetings of 2025.Summary
Recent comments from Federal Reserve officials, as analyzed by Bank of America (BofA), indicate a growing consensus for continued interest rate cuts at the remaining two meetings of 2025. While concerns about sticky inflation persist, there's increasing focus on risks within the labor market. New York Fed President John Williams has shown a shift in tone, expressing concern about labor market deterioration and supporting a return to “neutral” interest rates. However, not all voices are aligned, with Governor Michael Barr cautioning against complacency on inflation and suggesting only one cut at most. Despite these differing views, the overall momentum appears to favor further easing following the September rate cut. The next meetings are scheduled for October 28-29 and December 9-10, with the upcoming September Consumer Price Index report potentially influencing policy decisions. Market traders are largely anticipating 25 basis point cuts at both meetings, with some even betting on a 50 basis point reduction.
(Source：CoinDesk)