Fed Points to Two Interest-Rate Cuts This Year
Federal Reserve officials on Wednesday collectively penciled in two quarter-point cuts to interest rates by the end of 2025, matching expectations in the market.
Policymakers’ median estimate of where the federal-funds rate target range will be at the end of 2025 is for 3.75% to 4%, according to the latest update to their Summary of Economic Projections, released Wednesday.
The latest forecast left the median rate estimate unchanged from projections the bank released in March, despite several major shifts in trade policy, a downgrade to the U.S.’s credit rating, and increasing geopolitical risks.