Fed's Bostic: I only see one rate cut this year, but could be more if trade talks pick up

Federal Reserve (Fed) Bank of Atlanta President Raphael Bostic hit newswires on Monday with his own rate cut forecast. According to Bostic, the Fed is on pace to do only a single quarter-point rate cut in 2025. This undercuts current rate market bets of at least two cuts by December, with four total rate cuts priced in by H2 2026.

Key highlights

Policy is mildly restrictive.

I see one interest-rate cut this year.

We could pull forward actions if trade negotiations pick up.