ANZ Bank: The Fed's rate-cutting cycle will not be paused for long.
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TL;DR
ANZ Bank's Brian Martin expects the Fed to cut rates by 25 basis points in March and June, reaching 3%-3.25% by mid-year, dismissing the idea of a prolonged pause in rate cuts.
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ANZ BankFederal Reserveinterest ratesrate cutsinflation
According to Mars Finance, citing Jinshi, Brian Martin, Head of G3 Economy Research at ANZ Bank, stated that the Federal Reserve may keep interest rates unchanged in January, but the view that the rate-cutting cycle will be paused for a long time lacks a reasonable basis. He expects the Fed to lower the federal funds target rate by 25 basis points in March, and another 25 basis points in June, bringing the target rate down to 3%-3.25% by mid-year. Martin pointed out that US inflation will gradually moderate in 2026.