Fed to cut rates five times in 2025 to shore up economy amid tariff storm: Citi
Lede: Investing.com -- Trump's "liberation day" reciprocal tariffs turned out to be much harsher than expected, stoking the possibility of an all-out trade war and a new inflationary pulse, but against this uncertain backdrop, Citi analysts continue to believe a softer labor market will sway the Federal Reserve to deliver five rate cuts this year.
Citi analysts believe the elevated tariffs will persist for at least the next few months, which is expected to raise inflation significantly. But a softening labor market will ultimately sway the Fed to lean dovish, Citi analysts said in a recent note.
"Ultimately, we expect officials to lean dovishly toward their employment mandate and deliver 125 basis points of rate cuts this year," the analysts said.
