Wall Street still sees two rate cuts this year, but conviction is getting weaker, CNBC survey finds [Video]

Amid the uncertainty of fiscal policy and the persistence of inflation, respondents to the CNBC Fed Survey dialed back their expectations for interest rate cuts but still believe the central bank will ease this year.

Among the 25 respondents, 65% see two rate cuts in 2025, equal to the number penciled in by Federal Reserve officials in their recent forecasts and roughly equal to futures markets expectations. But that’s down from 78% in the prior survey, while 61% forecast at least one cut in 2026, down from 70% in December.

“I just don’t see (the Fed) having any confidence right now on how to proceed with rate cuts from here, especially as we await Trump’s tariff and tax policy,” said Peter Boockvar, chief investment officer at Bleakley Financial Group.

The fed funds rate is seen ending the year …