Deutsche Bank expects Fed's final 25bp cut of 2025 this week as Powell to flag high bar for 2026 easing

The U.S. dollar weakened on December 8 as markets looked ahead to this week's Federal Reserve policy decision, which many expect will again result in a rate cut, BlockBeats reported citing Jin10. Deutsche Bank analysts wrote in a report that the Fed is likely to announce on Wednesday its third and final 25-basis-point rate cut of 2025, adding that the decision may not be unanimous. The analysts said Chair Jerome Powell's press conference and accompanying statement will be key, and they expect him to signal a short-term pause in easing by stressing that the threshold for further cuts in early 2026 is very high.