Fed Likely to Pause Rate Cuts in January -- Market Talk

Dow Jones2024-12-19

0844 GMT - The U.S. Federal Reserve will likely pause rate cuts in January as it shifts to a slower pace of easing, abrdn analyst Dongyue Zhang says in a research note. Abrdn expects a cut in March if inflation continues to cool. The incoming Trump administration could bring heightened volatility following expected policy changes in 2025, Zhang says. Despite the Fed's hawkish outlook, abrdn thinks opportunities outweigh the risks. "The benefits from deregulation and a more business-friendly environment will unlock productivity gains and capital deployment," he says. Abrdn expects the U.S. economy to remain resilient with a healthy labor market, expanded AI-related capital spending and a stronger capital market. (sherry.qin@wsj.com)

 

(END) Dow Jones Newswires

December 19, 2024 03:44 ET (08:44 GMT)

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