Factbox-Main brokerages see slower tempo of Fed fee cuts regardless of Trump tariff uncertainty

(Reuters) – Main brokerages maintained their predictions for a slower tempo of interest-rate cuts by the U.S. Federal Reserve after the central financial institution saved its benchmark rate of interest unchanged on Wednesday.

The Fed left its benchmark in a single day rate of interest within the 4.25-4.50% vary, with Chair Jerome Powell describing the present uncertainty as “unusually elevated,” citing challenges in making new financial projections on account of current Trump administration coverage modifications.

The Fed additionally forecast slower financial development and better inflation.

Presently, merchants count on two fee cuts of 25 foundation factors every for the yr, based on knowledge compiled by LSEG. The Federal Open Market Committee (FOMC) is scheduled to satisfy once more on Might 6-7.

Listed here are the forecasts from main brokerages following the March assembly:

Complete No. of Fed Funds

Brokerage cuts in 2025 cuts in 2025 Fee

50 2 (25

Goldman Sachs bps bps every in June and three.75-4.00% (via

December) December)

50 2 (25

J.P.Morgan bps bps every in June and three.75-4.00% (via

September) September 2025)

125bp 5

Citigroup (beginning in could) 3.00-3.25% (finish of

2025)

50 2 (25

Barclays bps bps every in June and three.75-4.00% (via

September) December)

No 0

Berenberg fee reduce 4.25-4.50% (finish of

2025)

No 0

Nomura fee reduce 4.25-4.50% (finish of

2025)

50 2 (25

Barclays bps bps every in June and three.75-4.00% (via

September) December)

75 3 (25

HSBC bps bps every in June, 3.50-3.75% (finish of

September and 2025)

December)

50 2 (H2

ING bps 2025) 3.75-4.00% (finish of

2025)

(Compiled by the Dealer Analysis workforce in Bengaluru; Enhancing by Anil D’Silva)