Organization: Federal Reserve Expected to Cut Interest Rates Twice Next Year

BlockBeats News, November 18th: Christian Lenk, an analyst at Deutsche Zentral-Genossenschaftsbank, stated in a report that the Federal Reserve is expected to cut interest rates by 25 basis points in December, followed by more cautious actions.

He predicted that the Fed would only cut interest rates twice next year, in March and June, each time by 25 basis points. Deutsche Zentral-Genossenschaftsbank expects that despite the Fed's rate cut, rising inflation will continue to push up the yield on 10-year US Treasury bonds. Due to temporary tariff effects and a huge government deficit, US inflation is expected to rise in the coming quarters. The long end of the yield curve may rise further, but ultimately the yield will not deviate too far from its current level. The yield on 10-year US Treasury bonds is expected to rise to 4.50% in the next three months (currently at 4.103%) and to 4.60% within six months. (FXStreet)