Top Wall Street analyst Tom Lee believes that a Fed rate cut is highly likely, given the “overreaction” in the market.

The Federal Reserve is seen restarting interest-rate cuts in June, traders bet on Tuesday, as government data showed U.S. producer prices were unexpectedly flat last month and weekly jobless claims fell.

Expectations for the next interest-rate reduction are being brought forward after the stock market’s big selloff at the start of the week. Investors had penciled in June as the most likely moment for

The Fed is not expected to cut interest rates at the conclusion of its next meeting on March 19, but there may be clues to the timing of the next cut.

Barclays now expects the U.S. Federal Reserve to deliver two quarter-point interest rate cuts in June and September, the Wall Street brokerage said on Thursday, citing softer labor market conditions amid tariff uncertainty.

Lower rates can stimulate the economy, and Cramer said the data in the CPI report gives the Fed room to cut, which would benefit the market as a whole. The central bank may actually have to cut, he continued, because tariff increases could lead consumers to spend less, which in turn means many retailers will miss their estimates.

For the first time in 2025, markets are pricing in three Federal Reserve interest rate cuts as investor fears about an economic slowdown intensify.

The Federal Reserve won't lower interest rates at its policy meeting next week, but could deliver the first of a set of rapid-fire reductions in borrowing costs in June if rising fears of an economic downturn triggered by a trade war materialize.

Barclays analysts have reportedly increased their 2025 rate cut expectations to two from one amid softer U.S. labor market conditions and trade policy uncertainty. According to a Reuters report, Barclays expects two 25 basis points rate cuts each in June and September.

Barclays has lowered its expectations; now, it thinks the Federal Reserve will cut interest rates twice this year instead of once. This is due to unclear trade policy and the weakening U.S. job market.