05.01.2025 12:11:00

Here's What I Think the Fed Will Do With Interest Rates in 2025 -- And 2 Stocks That Could Be Winners

Over the past few months, expectations for interest rates in 2025 have changed. Thanks to relatively strong economic data, inflation that is still a little too high, and the Federal Reserve's commentary, the median expectation has gone from about 4-5 quarter-point rate cuts in 2025 to just one, according to the CME FedWatch tool.Recently, I wrote an article about bold predictions for 2025, one of which is that the Fed will end up cutting rates by a full percentage point this year. In a nutshell, I see economic uncertainty and inflation close to the 2% target, causing the Fed to be a little more aggressive.While many sectors aren't particularly rate-sensitive, a few are. Financial services and real estate stocks are two examples that could benefit tremendously from lower-than-expected rates. And some stocks could benefit more than others. Here are two stocks that could be big winners in 2025 if I'm right.Continue readingWeiter zum vollständigen Artikel bei MotleyFool

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