(Reuters) -Major brokerages, including BofA and Goldman Sachs, expect the U.S. Federal Reserve to hold interest rates steady in the upcoming January meeting, although a non-farm payrolls (NFP) report later on Friday was expected to offer more clues on the central bank’s monetary policy for the year.

After cutting rates by a quarter of a percentage point at the Dec. 17-18 meeting, Fed Chair Jerome Powell said policymakers could now be “cautious” about further reductions.

Here are the forecasts from major brokerages for 2025:

Rate cut estimates (in bps)

Brokerages Jan 2025 2025 Fed Funds Rate

BofA Global No rate cut 50 3.75-4.00% (end of

Research June)

Barclays No rate cut 50 3.75-4.00% (end of

2025)

Goldman Sachs No rate cut 75 (through 3.50-3.75% (through

September September 2025)

2025)

J.P.Morgan No rate cut 75(through 3.50-3.75% (through

September September 2025)

2025)

Morgan Stanley No rate cut 50 (through 3.75-4.00% (through

June 2025) June 2025)

Nomura No rate cut 25 4.00-4.25% (through

end of 2025)

*UBS Global No rate cut 125 3.00-3.25% (through

Research end of 2025)

Deutsche Bank No rate cut No Rate 4.25-4.50%

Cuts

Societe No rate cut – 3.00-3.25% (by early

Generale 2026)

ING No rate cut 75 3.75 – 4.00%

Macquarie No rate cut 25 4.00-4.25%

UBS Global No rate cut 50 3.75-4.00% (end of

Wealth 2025)

Management

Peel Hunt No rate cut 50 3.50-4.00%

* UBS Global Research and UBS Global Wealth Management are distinct, independent divisions in UBS Group

(Compiled by the Broker Research team in Bengaluru; Edited by Shinjini Ganguli, Maju Samuel, Shounak Dasgupta, Devika Syamnath and Anil D’Silva)

---