Wall Street economists have revised their expectations for additional Federal Reserve interest-rate cuts in response to stronger-than-expected US employment data released on Friday.
Bank of America, which previously predicted two quarter-point reductions this year, now believes none are necessary and warns that the next move could be a hike instead.
Citigroup, however, remains optimistic about further rate cuts, expecting five quarter-point reductions starting in May, six months later than initially anticipated.
Goldman Sachs has revised its forecast to two interest-rate cuts this year, down from three previously. The shift in expectations reflects the improved economic outlook and reduced need for monetary policy stimulus.
Source: https://www.bloomberg.com/news/articles/2025-01-10/bank-of-america-says-fed-is-done-cutting-rates-sees-hike-risk