Wells Fargo has adjusted its outlook for Federal Reserve policy, citing stronger-than-expected labor market data in recent months.
Analysts at the bank now anticipate two 25-basis-point rate cuts from the Federal Open Market Committee (FOMC) in 2025
- one in September
- and another in December
down from its previous projection of three cuts at the start of the year.
If implemented, this would bring the federal funds rate target range to 3.75%-4.00% by year-end 2025.