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Fed Rate Cuts 2025 Effects

Fed Rate Cuts 2025 Effects. While optimistic about economic growth and employment, the projections showed inflation would remain higher for longer, not reaching the target 2% level until 2027. Investors have scaled back their expectations for fed funds rate cuts in 2025, and an increasing number believe the central bank won't cut rates at all this year.


Fed Rate Cuts 2025 Effects

They’re penciling in fewer rate cuts in 2025, slightly higher inflation, and a modest increase in the unemployment rate. In december, fed officials expected to make two rate cuts in 2025, according to the dot plot, which shows where officials think rates are headed.

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