{"id":53458,"date":"2025-09-22T09:38:29","date_gmt":"2025-09-22T13:38:29","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/bostic-projects-single-2025-rate-cut-amid-persistent-inflation-concerns-keurig-dr-pepper-downgraded\/53458\/"},"modified":"2025-09-22T09:38:29","modified_gmt":"2025-09-22T13:38:29","slug":"bostic-projects-single-2025-rate-cut-amid-persistent-inflation-concerns-keurig-dr-pepper-downgraded","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/bostic-projects-single-2025-rate-cut-amid-persistent-inflation-concerns-keurig-dr-pepper-downgraded\/53458\/","title":{"rendered":"Bostic Projects Single 2025 Rate Cut Amid Persistent Inflation Concerns; Keurig Dr Pepper Downgraded"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Atlanta Fed President Raphael Bostic<\/strong> has indicated he anticipates only <strong>one interest rate cut<\/strong> in 2025, inclusive of a recent reduction, expressing reluctance for further cuts in October due to ongoing inflation concerns.<\/li>\n<li>Bostic projects that <strong>core inflation<\/strong> will remain elevated at <strong>3.1%<\/strong> by year-end and does not foresee inflation returning to the Federal Reserve&#39;s 2% target until <strong>2028<\/strong>.<\/li>\n<li><strong>BNP Paribas<\/strong> has downgraded <strong>Keurig Dr Pepper<\/strong> (<a href=\"\/stock\/KDP\">KDP<\/a>) to an <em>Underperform<\/em> rating, citing investor skepticism following a poorly received deal.<\/li>\n<li>The Atlanta Fed President also forecasts the <strong>unemployment rate<\/strong> to reach <strong>4.5%<\/strong> by the end of the year and warns that tariff cost buffers may soon be exhausted.<\/li>\n<li>Gaming entertainment group <strong>Allwyn<\/strong> is set to acquire a majority stake in daily fantasy sports operator <strong>PrizePicks<\/strong>, a deal that implies an upfront enterprise value of <strong>$2.5 billion<\/strong> for PrizePicks.<\/li>\n<\/ul>\n<p>Atlanta Fed President Raphael Bostic has outlined a cautious outlook for monetary policy and the broader U.S. economy, projecting only a single interest rate cut for 2025, which includes a reduction already implemented. Bostic expressed hesitation regarding an October rate cut, stating he would not be in favor of such a move today, primarily due to persistent inflationary pressures. He sees little reason to cut rates further for now.<\/p>\n<p>Inflation remains a significant concern for Bostic, who does not expect it to return to the Federal Reserve&#39;s 2% target until 2028. His latest projections indicate that core inflation is anticipated to stand at 3.1% by the end of the current year. This elevated inflation outlook underpins his cautious stance on further rate adjustments.<\/p>\n<p>On the labor front, Bostic anticipates the unemployment rate will rise to 4.5% by year-end. Despite this, he does not believe the labor market is currently in a crisis. Furthermore, the Atlanta Fed President warned that the buffering capacity against tariff costs might soon be depleted, suggesting potential future price impacts.<\/p>\n<p>In corporate news, <strong>BNP Paribas<\/strong> has downgraded <strong>Keurig Dr Pepper<\/strong> (<a href=\"\/stock\/KDP\">KDP<\/a>) from a &quot;neutral&quot; to an &quot;underperform&quot; rating. This downgrade follows a &quot;poorly received deal,&quot; with analyst Kevin Grundy citing concerns over the company&#39;s merger with JDE Peet and the challenges management faces in convincing skeptical shareholders. The downgrade has led to a price target of $24 for KDP.<\/p>\n<p>Separately, <strong>Allwyn International AG<\/strong>, a leading lottery-led gaming entertainment company, has announced its acquisition of a 62.3% stake in <strong>PrizePicks<\/strong>, a prominent daily fantasy sports operator. The initial cash consideration for this stake is <strong>$1.6 billion<\/strong>, which implies an upfront enterprise value of <strong>$2.5 billion<\/strong> for PrizePicks. The deal could see the implied enterprise value rise to <strong>$4.15 billion<\/strong> if PrizePicks achieves certain performance metrics over the next three years. This transaction is expected to close in the first half of 2026.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Atlanta Fed President Raphael Bostic has indicated he anticipates only one interest rate cut in 2025, inclusive of 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