Federal Reserve Poised to Cut Rates Amid Economic Uncertainty

The Federal Reserve is poised to reduce short-term interest rates during its mid-June monetary policy meeting, according to market expectations. Futures markets signal a cumulative 75 basis point decline in benchmark rates by the end of 2025, reflecting growing anticipation of policy easing in response to evolving economic conditions. This shift from the prolonged tightening cycle that dominated monetary policy in prior years, is rooted in moderating inflation metrics, signs of cooling demand across key sectors, and diminishing labor market momentum. The 75 basis point projection underscores a gradual approach to easing, contrasting with the rapid tightening of recent years, and is expected to support sustained expansion without compromising inflation goals.