Dahua Bank: The Fed may cut interest rates by 75 basis points next year

On December 19th, Jin10 Data reported that Alvin Liew, senior economist at OCBC Bank, wrote in a report that the Fed may cut interest rates by 75 basis points next year. He said that the Fed’s suggestion to slow down its easing pace in the future is not surprising, but the market is surprised by the reduction in the expected interest rate cut. OCBC Bank stated that the reduction in expected interest rate cuts reflects the expectation of increased inflation pressure resulting from the Trump administration’s possible imposition of trade tariffs after taking office. OCBC Bank still believes that the Fed will cut interest rates three times next year until Trump’s policies become clearer by early 2025.