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

Golden Finance reported that RBC Capital Markets in Canada mentioned that when Federal Reserve officials update the quarterly dot plot forecast this week, it may imply that interest rates will only be cut twice next year, while the expectation in September was for four cuts. The median estimate from the September dot plot of the Federal Reserve implies a 100 basis point cut in 2024 and another 100 basis point cut in 2025. ‘Since the November meeting, the speeches of Federal Reserve officials have almost locked in a 25 basis point rate cut,’ wrote Blake Gwinn and Izaac Brook of RBC Royal Bank in their report on Wednesday, ‘Therefore, the focus of this week’s meeting will mainly be on the updated dot plot and Powell’s speech’.