Fed Rate Cuts 2025 Predictions. Fed Cutting Rates 2025 Cd Raleigh B. Smith Well into 2024, the rate was as high as 5.25% to 5.5% As a result, the Fed's "dot plot" forecast released last month indicated the central bankers were predicting just two 2025 rate cuts—of a quarter-point each—across the coming year's eight.
Federal Reserve Heads Into 2024 Ready To Cut Interest Rates State of the Union from www.stateofunion.org
The current forecast is roughly an even chance of a cut. The Federal Funds Rate and the 10-year Treasury yield, now about 4.3%, are blamed for mortgage rates staying close to 7% and stunting home sales.
Federal Reserve Heads Into 2024 Ready To Cut Interest Rates State of the Union
But there will be six more Fed rate-setting meetings in 2025 after the March gathering, and according to the CME Group's FedWatch Tool, interest rate futures traders are currently pricing in more. The economy, meanwhile, grew at a healthy 2.8% annual rate in the third quarter and is projected to expand 3.1% in the current quarter, according to the Federal Reserve Bank of Atlanta's forecast. The Federal Reserve lowered interest rates on Wednesday by 25 basis points to a range of 4.25%-4.5% at its final meeting of the year and signaled that it would slow down the pace of its cuts.
Forecast for Fed's new forecasts still one more rate hike to go Reuters. The current forecast is roughly an even chance of a cut. As a result, the Fed's "dot plot" forecast released last month indicated the central bankers were predicting just two 2025 rate cuts—of a quarter-point each—across the coming year's eight.
Expected Fed Rate Cuts 2025 June Hana Claire. Core PCE inflation, the Fed's preferred measure, rose to 2.8% in November from a cycle low of 2.6% in June. The FOMC's next two interest rate decisions on March 19 and May 7 are seen as less likely to deliver interest rate cuts with short term rates likely remaining at the current level of 4.25% to 4.5%.