Are Fed Cuts Still on The Table Amid Sticky Inflation and Slowing Growth?

Feb. 28, 2025 - 1 minute
Portrait of Gennadiy Goldberg speaking on the MoneyTalk show.

Sticky inflation and signs of a slowing U.S. economy are raising questions among investors about what moves the Fed could make on interest rates. MoneyTalk’s Anthony Okolie discusses this and more with Gennadiy Goldberg, Head of U.S. Rates Strategy with TD Securities.

Key Takeaways

  • The latest CPI report shows sign of sticky inflation; however, we are seeing signs of gradual inflation moderation, which is increasing the odds of the Fed keeping interest rates higher for longer.
  • We are expecting the Fed to keep rates on hold again in March with no change in rates for the first half of the year. We expect cuts to resume in the second half of 2025 and have pencilled in four cuts, although the exact timing or magnitude of those cuts is uncertain.
  • Markets are looking for clarity on trade disruption, immigration, and fiscal policy.
  • Gold revaluation could release US$750 billion dollars cash for the Treasury. It would require Congress passing a bill but could lower deficit expectations for a year which could help push yields lower. Could be supportive for bond investors.

This episode was recorded on February 26, 2025.

Watch the full episode featuring Gennadiy Goldberg discussing the economy and fiscal policy on MoneyTalk Live


Portrait of Gennadiy Goldberg

Head of U.S. Rates Strategy, TD Securities

Portrait of Gennadiy Goldberg


Head of U.S. Rates Strategy, TD Securities

Portrait of Gennadiy Goldberg


Head of U.S. Rates Strategy, TD Securities

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