FACTBOX-Top brokerages eye consecutive Fed rate cuts for the rest of 2025

ReutersOct 28, 2025 8:19 AM

Oct 28 (Reuters) - Major brokerages expect the U.S. Federal Reserve to deliver 25-basis-point interest rate cuts at each of its two remaining monetary policy meetings this year, following the widely anticipated quarter-point reduction in September.

BofA Global Research is the only major brokerage forecasting a single rate cut from the U.S. central bank this year.

While the Fed is widely expected to cut rates at this week's policy meeting ending Wednesday, markets will closely watch for any signs that the central bank may be preparing to wind down its quantitative tightening program.

Focus will also be on whether Fed Chair Jerome Powell offers any guidance on the outlook for the rate cuts, with the government shutdown leaving officials in the dark on fresh economic indicators.

Here are the forecasts from major brokerages for 2025:

Brokerage	Total cuts in 2025	No. of cuts in 2025	Fed Funds Rate (end of 2025)
Citigroup	50 bps	2	3.00-3.25% (March 2026)
Wells Fargo	50 bps	2	3.50-3.75%
Goldman Sachs	50 bps	2	3.50-3.75%
J.P.Morgan	50 bps	2	3.50-3.75%
Barclays	50 bps	2	3.50-3.75%
Nomura	50 bps	2	3.50-3.75%
Morgan Stanley	50 bps	2	3.50-3.75%
Deutsche Bank	50 bps	2	3.50-3.75%
BofA Global Research	25 bps	1 (in October)	3.75-4.00%
UBS Global Research	75 bps(by Q1 2026)	2	3.25-3.50% (by Q1 2026)
BNP Paribas	50 bps	2	3.50-3.75%
HSBC	50 bps	2	3.50-3.75%
UBS Global Wealth Management	75 bps(by Q1 2026)	2	3.25-3.50% (by Q1 2026)
Standard Chartered	50 bps	2	3.50-3.75%

UBS Global Research and UBS Global Wealth Management are distinct, independent divisions in UBS Group

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.