Deutsche Bank predicts that the Federal Reserve will suspend interest rate adjustments for the entire year of 2025

According to a report by Jin Shi, concerns about a slowdown in the labor market have been temporarily put on hold as the US economy steadily grows. The crux of the current debate in the market is how much the Federal Reserve will cut interest rates next year without significant improvement in inflation data. Matthew Luzzetti, Chief US Economist at Deutsche Bank, predicts that the Federal Reserve will cut interest rates again in December and then pause rate adjustments throughout 2025, waiting for more progress on inflation. He said, "The urgency for the Fed to cut interest rates is much smaller, and slowing down the pace of rate cuts earlier than they expected may make sense In a recent speech, Federal Reserve Governor Bauman stated that the progress towards the Fed's 2% target for inflation has "stalled" in recent months, and she called on the Fed to "cautiously" cut interest rates.