---
title: "Bank of America: Expects the Federal Reserve to cut interest rates by 0.25% in the first and second quarters of next year"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/222781649.md"
description: "Claudio Irigoyen, head of Global Economic Research at Bank of America, expects during an online meeting that the Federal Reserve will cut interest rates by 0.25% in both the first and second quarters of next year, totaling 0.5%. As for the second half of next year, it will depend on whether the Trump administration's tariffs and tax cuts will stimulate inflation. However, he estimates that the Federal Reserve will not end the current rate-cutting cycle after two cuts next year, but will extend the pace of rate cuts. Claudio Irigoyen stated that Trump hopes to reduce federal spending to lower the fiscal deficit, thereby partially offsetting the impact of tax cuts on federal government revenue, but he believes that reducing the fiscal deficit is not easy. Claudio Irigoyen expects global economic growth (GDP) this year to be 3.1%, increasing to 3.2% next year, while the U.S. GDP is expected to grow by 2.7% this year, slowing to 2.4% next year, and further slowing to 2.1% by 2026. As for inflation (CPI), he estimates that the U.S. inflation rate will be 2.9% this year, dropping to 2.5% next year, and further declining to 2.3% by 2026"
datetime: "2024-12-19T09:07:05.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/222781649.md)
  - [en](https://longbridge.com/en/news/222781649.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/222781649.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/222781649.md) | [繁體中文](https://longbridge.com/zh-HK/news/222781649.md)


# Bank of America: Expects the Federal Reserve to cut interest rates by 0.25% in the first and second quarters of next year

According to the Zhitong Finance APP, Claudio Irigoyen, head of Global Economic Research at Bank of America, predicted during an online meeting that the Federal Reserve will cut interest rates by 0.25% in both the first and second quarters of next year, totaling 0.5%. As for the second half of next year, it will depend on whether the Trump administration's tariffs and tax cuts will stimulate inflation. However, he estimates that the Federal Reserve will not end the current rate-cutting cycle after two cuts next year, but will extend the pace of rate cuts.

Claudio Irigoyen stated that Trump hopes to reduce federal spending to lower the fiscal deficit, thereby partially offsetting the impact of tax cuts on federal government revenue. However, he believes that reducing the fiscal deficit is not easy. Claudio Irigoyen expects global economic growth (GDP) to be 3.1% this year, increasing to 3.2% next year, while the U.S. GDP is expected to grow by 2.7% this year, slowing to 2.4% next year, and further slowing to 2.1% by 2026. Regarding inflation (CPI), he estimates that the U.S. inflation rate will be 2.9% this year, dropping to 2.5% next year, and further decreasing to 2.3% by 2026

### Related Stocks

- [Bank of America Corporation (BAC.US)](https://longbridge.com/en/quote/BAC.US.md)
- [Phunware, Inc. (PHUN.US)](https://longbridge.com/en/quote/PHUN.US.md)
- [Trump Media & Technology Group Corp. (DJT.US)](https://longbridge.com/en/quote/DJT.US.md)
- [Trump Media & Tech - CW28 (DJTWW.US)](https://longbridge.com/en/quote/DJTWW.US.md)

## Related News & Research

- [How devastating Anthropic’s leak exposed 512,000 lines of Claude Code](https://longbridge.com/en/news/281215116.md)
- [Gold Hunter shifts from quiet buildup to fully funded drilling push at Newfoundland gold district](https://longbridge.com/en/news/281261616.md)
- [Warren Buffett teams up with NBA superstar Stephen Curry for charity lunch, reviving iconic auction](https://longbridge.com/en/news/281182480.md)
- [How JPMorgan's plan to revive the American dream by going smaller would also help itself](https://longbridge.com/en/news/281225965.md)
- [04:00 ETM&A Source® Announces the 2026 Spring Conference & Deal Market](https://longbridge.com/en/news/281147895.md)