Central Banks
El-Erian Sees Fed Delivering One Interest-Rate Cut in 2025
Mohamed El-Erian expects the Federal Reserve to deliver just one interest-rate cut this year, in contrast to what the market and the central bank are projecting.
Markets are fully pricing in at least two rate reductions in 2025 — plus a high likelihood of a third. In all, they see about 70 basis points of easing this year, with the first quarter-point cut in July. Meanwhile, the central bank’s latest dot plot calls for only two cuts.