AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Fed: Seven members pencil in zero rate cuts for 2025
ByAinvest
Wednesday, Jun 18, 2025 2:07 pm ET1min read
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
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet