The Canadian Chamber of Commerce: The Fed will need more than 50 basis points of rate cuts next year

On December 24, Jinshi Data reported that the median forecast of the US Federal Reserve for the Intrerest Rate in 2025 is only a 50 basis point cut, but the Business Council of Canada (BCA) expects more rate cuts. BCA analysts said in a report that inflation is likely to be lower than the Fed’s forecast for 2025, while the unemployment rate may be higher than the Fed’s forecast for 2025. They said, ‘Therefore, more than 50 basis points of easing policy will be needed.’ The Fed predicts that the unemployment rate will be 4.3% by the end of 2025, ‘which requires significant improvement in the momentum of the labor market, a trend we believe is unlikely to occur.’