Fed projects 50 bps rate cuts in 2025, sees 3.75%-4% range - Breaking The News

Fed projects 50 bps rate cuts in 2025, sees 3.75%-4% range

19 March

1 min read

EPA-EFE/JIM LO SCALZO

The United States Federal Reserve's latest economic projection, released on Wednesday, indicates that policymakers expect to cut interest rates by 50 bps in 2025, bringing the federal funds rate to a range of 3.75% to 4%. Estimates for next year envisage the rate at the range of 3.25% to 3.5%.

The institution forecasted that unemployment would be 4.4%, one percentage point higher than in December. Meanwhile, inflation remains a concern, with personal consumption expenditures (PCE) inflation projected at 2.7% for 2025 and declining to 2.2% in 2026.

Core PCE, which excludes food and energy, is expected at 2.8% this year before easing to 2.2% next year.

fed interest rate

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