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Fed sees two rate cuts in 2025, projects higher inflation and lower economic growth


Published on Wednesday, March 19th 2025 at 15:00 GMT by AOL   Print publication without navigation

  • The Federal Reserve maintained its previously expected pace of rate cuts, but signaled higher inflation and a slowdown in economic growth for 2025.

The article from AOL Finance discusses the Federal Reserve's latest dot plot, which indicates that the central bank anticipates maintaining higher interest rates for a longer period than previously expected. This shift in policy reflects concerns over persistent inflation and a robust labor market. The dot plot, a chart showing individual Federal Open Market Committee (FOMC) members' projections for the federal funds rate, suggests a median expectation of the rate reaching about 5.1% by the end of 2023, with rates staying elevated into 2024. This hawkish stance aims to combat inflation, which remains above the Fed's 2% target, despite recent rate hikes. The article also mentions that this outlook could lead to higher borrowing costs for consumers and businesses, potentially slowing economic growth but helping to cool down inflation.

Read the Full AOL Article at:
[ https://www.aol.com/finance/fed-dot-plot-shows-central-180836401.html ]

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