Deutsche Bank Expects Fed to Cut Rates 25bp This Week, Powell May Signal High Bar for 2026 Cuts
The Federal Reserve is expected to cut rates by 25 basis points on Wednesday, marking its third and final reduction of 2025, Deutsche Bank analysts said in a Dec. 8 report. The decision may face dissent among policymakers. Analysts said Fed Chair Powell's press conference and accompanying statement will be critical, projecting he may signal a high threshold for further cuts in early 2026 and indicate a near-term pause in easing.