Fed Predictions for 2025–2026 Rate Cuts Have Softened

The Fed's December 2024 quarterly "dot plot" prediction shows the federal funds rate remaining higher in 2025 and 2026 than the central bank previously forecasted.

The federal funds rate is represented by a range, currently 4.25%–4.50%. For simplicity, the numbers above indicate the lower end of the range.
Source: Federal Reserve Board
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