Wall Street Braces for Slower Fed Rate Cuts in 2025

Wall Street analysts are revising their expectations for Federal Reserve interest rate cuts in 2025. While the Fed is expected to cut rates for the fourth time this year in December, economists predict a slower pace of cuts next year. Persistent inflation and solid economic growth have led to doubts about rapid rate reductions. Markets now project about two cuts in 2025, down from the Fed’s earlier projection of four. Economists generally agree that the current federal funds rate is restrictive, but the extent of future cuts remains uncertain without significant improvement in inflation data.