Fed: Seven members pencil in zero rate cuts for 2025
PorAinvest
miércoles, 18 de junio de 2025, 2:07 pm ET1 min de lectura
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The projections, submitted in conjunction with the FOMC meeting held on June 17-18, 2025, indicate that the Federal Reserve expects the economy to remain strong, with real GDP growth projected at 1.7% for 2025, 1.8% for 2026, and 1.8% for 2027. The unemployment rate is expected to remain low, at 4.4% for 2025, 4.3% for 2026, and 4.2% for 2027. Inflation, as measured by the Personal Consumption Expenditures (PCE) price index, is projected to decrease from 2.7% in 2025 to 2.0% in 2027.
The median projection for the federal funds rate in 2025 is 3.9%, with a range of 3.1% to 3.9%. This indicates that the Federal Reserve is likely to pause further rate cuts in 2025, as the economy continues to show signs of strength and inflation remains under control.
The projections also highlight a divergence in views among FOMC members. While seven members expect zero rate cuts, three members anticipate a 25 basis point cut, and one member expects a 50 basis point cut. This diversity of opinions underscores the complexity of the economic outlook and the challenges faced by the Federal Reserve in navigating the appropriate monetary policy response.
The latest projections reflect the Federal Reserve's cautious approach to interest rate policy, as it assesses the impact of President Trump's policies on the economy. The Federal Reserve has signaled that it will closely monitor the economy and inflation indicators before making any further adjustments to interest rates.
The economic projections provide valuable insights into the Federal Reserve's thinking and the broader economic outlook. Investors and financial professionals should closely monitor these developments, as they have significant implications for interest rates, bond yields, and overall market conditions.
References:
[1] https://www.moomoo.com/news/post/94397144/record-tr4cking-news-trump-wavers-on-joining-war-boosting-risks-with-iran
[2] https://www.federalreserve.gov/monetarypolicy/fomcprojtabl20250618.htm
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Fed: Seven members pencil in zero rate cuts for 2025
In a significant development, seven members of the Federal Open Market Committee (FOMC) have penciled in zero rate cuts for 2025, according to the latest economic projections released on June 17, 2025. This shift in expectations follows a series of interest rate cuts in 2024, which aimed to support the economy amid global uncertainties.The projections, submitted in conjunction with the FOMC meeting held on June 17-18, 2025, indicate that the Federal Reserve expects the economy to remain strong, with real GDP growth projected at 1.7% for 2025, 1.8% for 2026, and 1.8% for 2027. The unemployment rate is expected to remain low, at 4.4% for 2025, 4.3% for 2026, and 4.2% for 2027. Inflation, as measured by the Personal Consumption Expenditures (PCE) price index, is projected to decrease from 2.7% in 2025 to 2.0% in 2027.
The median projection for the federal funds rate in 2025 is 3.9%, with a range of 3.1% to 3.9%. This indicates that the Federal Reserve is likely to pause further rate cuts in 2025, as the economy continues to show signs of strength and inflation remains under control.
The projections also highlight a divergence in views among FOMC members. While seven members expect zero rate cuts, three members anticipate a 25 basis point cut, and one member expects a 50 basis point cut. This diversity of opinions underscores the complexity of the economic outlook and the challenges faced by the Federal Reserve in navigating the appropriate monetary policy response.
The latest projections reflect the Federal Reserve's cautious approach to interest rate policy, as it assesses the impact of President Trump's policies on the economy. The Federal Reserve has signaled that it will closely monitor the economy and inflation indicators before making any further adjustments to interest rates.
The economic projections provide valuable insights into the Federal Reserve's thinking and the broader economic outlook. Investors and financial professionals should closely monitor these developments, as they have significant implications for interest rates, bond yields, and overall market conditions.
References:
[1] https://www.moomoo.com/news/post/94397144/record-tr4cking-news-trump-wavers-on-joining-war-boosting-risks-with-iran
[2] https://www.federalreserve.gov/monetarypolicy/fomcprojtabl20250618.htm
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