Fed Adjusts Rate Cut Expectations for 2025 Post-Meeting

Reported 3 days ago

The Federal Reserve has cut its benchmark lending rate for the third consecutive meeting, reducing it by 25 basis points to between 4.25% and 4.5%. However, they revised their 2025 rate cut projections downwards due to persistent inflation risks, now forecasting two cuts with an end-of-year Federal Funds Rate of 3.9%. Despite recent solid economic data, including robust retail sales and job growth, inflation expectations have risen, prompting a cautious outlook as the Fed remains vigilant on economic developments.

Source: YAHOO

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