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DWS Foresees 3 Fed Rate Cuts Next Yr, S&P 500 at 7,500 by Dec 2026
2025-12-12 16:05:47
Over the next year, US inflation is expected to remain high or even edge up a bit, said Vincenzo Vedda, Chief Investment Officer at DWS. His inflation forecast is 2.9%.

With a weakening job market, however, Vedda anticipates the Fed to cut rates three more times, each by a quarter of a percentage point, eventually lowering the target rate range to 3-3.25%.

Vedda also believes that the S&P 500 still has considerable room for growth next year. His target for the S&P 500 as of December 2026 is 7,500. It is worth noting that investors will be more cautious in selecting AI stocks than before. If a company underperforms expectations, its stock price will inevitably face adjustment pressure.
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AAStocks Financial News
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