Royal Bank of Canada: The latest dot plot from the Federal Reserve suggests only two rate cuts in 2025

Golden Finance reported that RBC Capital Markets indicated in Canada’s Royal Bank that when Fed officials update the quarterly dot plot forecast this week, they may suggest that there will only be two rate cuts next year, while the expectation in September was for four cuts. The median estimate of the September Fed dot plot suggests a 100 basis point cut in 2024 and another 100 basis point cut in 2025. “Since the November meeting, Fed officials’ speeches have almost locked in a 25 basis point rate cut,” wrote Blake Gwinn and Izaac Brook of Canada’s Royal Bank in their report on Wednesday, “so the focus of this week’s meeting will mainly be on the updated dot plot and Powell’s speech”.