Institution: The market pricing for the Federal Reserve's interest rate cuts in 2025 seems reasonable

ChainCatcher news, Noah Weiss, Senior Portfolio Manager at Allspring Global Investments, stated that the market's expectation of the Federal Reserve cutting rates three to four times in 2025 and five to six times by July 2026 is reasonable. "Not because this is our expectation, but because it strikes a delicate balance between two distinctly different yet very plausible scenarios."

In the first scenario, inflation remains high while the economy avoids recession, which means the Fed will cut rates at a slower pace than the market currently anticipates. The other scenario involves an economic downturn and declining inflation, potentially leading to five to six rate cuts by the end of 2025 and possibly eight or more cuts by July 2026, depending on the severity of the recession.