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Commerzbank economists anticipate that the Federal Reserve (Fed) will implement a series of five rate cuts, each amounting to 25 basis points (bps).
Fed to adjust key rates
Our anticipation is that the initial rate cut will not occur until the June meeting, postponing it by one session compared to our earlier assumption.
In our revised outlook, we anticipate a total of five interest rate reductions, each amounting to 25 bps (down from the previous estimate of 8). The Federal Reserve is expected to implement three of these cuts within the current year and two in the following year, resulting in a key interest rate of 4.25%.