Fed officials expect two rate cuts in 2025!

On June 18, local time, according to media reports, Fed officials expect U.S. inflation to worsen in the coming months, but still expect to cut interest rates twice by the end of 2025, consistent with their forecasts in March.

The Fed expects that by the end of 2025, U.S. economic growth will slow significantly, inflation will rise, and unemployment will rise slightly compared to its forecasts in March. Fed officials expect U.S. inflation to rise to 3% by the end of 2025, unemployment to rise to 4.5%, and economic growth to slow to 1.4%.

Fed Chairman Powell warned that day not to over-trust the Fed's interest rate forecasts because forecasts may change based on published data, especially inflation data. Powell said at a press conference after the Fed's policy meeting that no one has absolute confidence in these interest rate forecasts, and it will all depend on the data.

On the 18th, the US Federal Reserve concluded its two-day monetary policy meeting and announced that it would maintain the target range of the federal funds rate at 4.25% to 4.50%. This is the fourth consecutive time that the Federal Reserve has decided to keep interest rates unchanged.