Guggenheim expects Fed to cut rates about every quarter in 2025

DAVOS, Switzerland, Jan 20 (Reuters) - Guggenheim Partners' chief investment officer forecast on Monday that the U.S. Federal Reserve is likely to cut interest rates roughly every quarter in 2025, bringing the reduction to around 75 basis points or even a full percentage point this year.

The Fed will continue cutting, albeit on a slower path than had been expected, Guggenheim CIO Anne Walsh told the Reuters Global Markets Forum, opens new tab at the start of the World Economic Forum annual meeting in Davos.

Trader bets have moved in the last few days to just one Fed rate cut this year with the chances of a second cut hanging in the balance, down from at least three a month ago.

Tariffs expected to be imposed by incoming President Donald Trump will probably not be as punishing as most expect, Walsh said, as long as the dollar remains strong as the reserve currency and the U.S. continues to attract capital.

Walsh expects tariffs, on average, to rise by less than 10% across the board, and be more country-specific.

After a sharp bull run until 2022, the bond market is now trading in a range for its third year, Walsh said, with the volatility within this making it...
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