Analyst expects Fed to cut rates by 100 bps in 2025 despite hawkish signals in dot plot

Analyst Anna Wong said on Dec. 11 that the Federal Reserve's latest policy statement and projections were on balance dovish despite some hawkish undertones, BlockBeats and Jin10 report. The Federal Open Market Committee sharply revised up its growth outlook, lowered inflation forecasts, kept the dot plot unchanged and announced the start of reserve-management purchases, while signaling a preference for keeping rate cuts on hold for longer. Wong expects the Fed to cut rates by a total of 100 basis points in 2025, citing an outlook for weaker wage growth and no clear signs of inflation re-accelerating in the first half of 2026, even though the dot plot points to only one rate cut in 2026 versus two expected by markets.