Canadian Business Economics Association: The Federal Reserve will need to cut interest rates by more than 50 basis points next year

ChainCatcher news, according to Jin10 report, the median forecast of the Fed’s interest 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 2025 forecast, while unemployment may be higher than the Fed’s 2025 forecast. They said, “Therefore, it will take more than 50 basis points of loose policy.” The Fed predicts that the unemployment rate will be 4.3% by the end of 2025, “This requires significant improvement in the momentum of the labor market, and we believe that this trend change is unlikely to occur.”