Barclays says a Fed charge minimize nonetheless anticipated in 2025, however the dangers of no minimize is rising

The information from the US on Wednesday is right here:

• Ubaidahsan Americas FX information wrap 12 Feb: Increased US CPI pushes yields greater. USD is blended

Earlier responses;

Fed more likely to keep on maintain regardless of sturdy CPI, charge cuts anticipated in Q3

• Financial institution of America: Sturdy CPI underscores Fed’s warning, charge hikes again in dialogue

• Morgan Stanley hasn’t modified its Federal Reserve forecast regardless of sturdy US CPI report
• Goldman Sachs revises core PCE inflation forecast greater after CPI report

Barclays analysts keep their expectation of a single Federal Reserve charge minimize this yr, however warn that the dangers of no cuts in any respect are rising. Of their newest evaluation, they spotlight rising market deal with the potential for charge hikes, reflecting persistent inflation issues and a resilient U.S. financial system.

Whereas Barclays nonetheless sees financial easing on the horizon, they acknowledge that stronger-than-expected financial information might delay and even eradicate the necessity for cuts in 2025. With the Fed preserving a data-dependent method, market contributors are carefully watching upcoming inflation stories and labor market traits for additional coverage alerts.

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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