Fed set to cut rates, but forecast for rest of 2025 is key to markets with politics clouding the picture

Fed set to cut rates, but forecast for rest of 2025 is key to markets with politics clouding the picture


Key Points
  • The Fed meets with some big items on the agenda: An important rate decision and forecast of what’s ahead, combined with a healthy dose of political intrigue uncommon for central bank policymakers.
  • While the rate decision is fairly pretty much in the bag, what happens from there is anybody’s guess.
  • Markets are betting heavily that the Fed will stick to a quarter-point, or 25 basis point, reduction from the current target range of 4.25%-4.5%.



Source

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