The Federal Reserve cut interest rates on Wednesday It fluctuates between 4.25% and 4.5% by 25 basis points. At the end of the year meeting, he expressed that he will slow down the pace of cuts.

Along with your announcement of reduced interest rates Varies between 4.25% and 4.5%The Fed released an updated economic forecast in its Summary of Economic Projections (SEP), which included “dot plotit reflects policymakers' expectations of where interest rates may be headed in the future.

Fed officials expect the fed funds rate to reach 3.9% in 2025, higher than the 3.4% the Fed projected last September. The Fed moved outside of the 50 basis point rate cut in September An increase of 25 basis points Over the past year or so, the central bank has indicated that it expects to cut interest rates in half in 2025.

Officials expect two more cuts in 2026, bringing the Fed rate down to 3.4%. In September, central bank officials predicted that the policy rate would reach 2.9 percent in 2026.

Core inflation will reach 2.5% next year, up from 2.2% in September, before easing to 2.2% in 2026 and 2.0% in 2027, according to the Federal Reserve.

According to officials, the unemployment rate will be 4.3% in 2025, lower than the previous forecast of 4.4%. The unemployment rate is expected to remain at this level through 2026 and 2027.

The Fed raised its previous forecast for US economic growth, with the economy expected to grow by 2.1% next year before slowing to 2.0% in 2026 and 1.9% in 2027.

In September, officials projected GDP growth of 2.0% in 2025, 2026 and 2027, down from a previous forecast of 2.0% growth in 2024 to 2.5%.

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