According to BlockBeats, on March 4, Deutsche Bank's economic team maintains one of the most hawkish views on Wall Street regarding the Federal Reserve's policy for 2025, predicting that the Fed will not cut interest rates this year. While this remains the team's official stance, Chief U.S. Economist Matthew Luzzetti acknowledges that the impact of new tariffs imposed by U.S. President Donald Trump could jeopardize this forecast.
Luzzetti noted, "You have certainly started to see some negative effects of trade uncertainty in the economic data." He added that if these effects expand and are reflected in weaker labor market data, the Federal Reserve might consider cutting rates this year.
However, Luzzetti emphasized that before altering their forecast on the Fed's policy, Deutsche Bank intends to observe how long the tariffs will remain in place.