Just a quick clip from HSBC, analysts at the bank are still predicting more rate cuts ahead of the Federal Reserve:
- 75bp of rate cuts ahead for 2025
- 25bps steps at the March, June and September meetings
- “one more cut than Fed members expected, largely because we find it strange that the Fed does not expect further declines in unemployment”
- then declining back to no further rate cuts in 2026
More:
- US Equities, fundamentals remain supportive … with a less aggressive Fed easing cycle, clearly the upside has to come from earnings, not valuation multiples
- earnings prospects – especially outside of the Magnificent 7 – are low, providing a low bar to cross
- The strength of the US dollar should continue as other central banks may become more aggressive, causing the USD to benefit from an attractive rate differential
This article was written by Eamonn Sheridan at www.forexlive.com.
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