Federal Reserve ‘Will Be The Last To Cut’ Rates, Says Expert Who Still Expects Four Cuts In 2025 – Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), SPDR S&P 500 (ARCA:SPY)

Despite mounting pressure and calls for lower interest rates, the Federal Reserve held rates steady at 4.25%-4.5% on Wednesday. This analyst anticipates that the Fed would be among the last central banks to cut interest rates, while still expecting four cuts this year.

What Happened: The Chairman and Founder of Navellier & Associates, Louis Navellier, said that “Other central banks like the Bank of England and the European Central Bank are going to continue to cut rates, so we are still in the midst of a global interest rate collapse.”

This comes as the Bank of England cut its interest rates to 4.25% as widely expected by the market, on Thursday.

According to him, with other central banks cutting their interest rates, “money will slosh back to America because our rates will be higher than everybody else’s.”

“Our Fed will be the last to cut, but I’m still in the camp that they should cut four times this year,” he said.

Navellier also highlighted a positive development in the ongoing U.S.-China trade tensions. He pointed out that China has recently exempted 131 U.S. goods from tariffs, representing approximately $40 billion in trade.

This, according to Navellier, is a “thaw” in the trade dispute, a sentiment backed by the upcoming meeting between U.S. Treasury Secretary Scott Bessent and Chinese trade negotiators this weekend in Switzerland.

“We do have tariffs on autos and reciprocal tariffs against other countries, but the irony is that most reciprocal tariffs are not expected to be enacted, since most countries will be lowering their respective trade barriers and promising to buy U.S. goods,” he said.

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Why It Matters: Echoing concerns about a potential economic slowdown, Mohamed A. El-Erian, another prominent economist, noted on X that the Federal Reserve’s statement signaled a “higher probability of a stagflationary wind,” indicating a greater risk of both higher inflation and higher unemployment.