What will economists predict the FED will do in 2025 and how will interest rates decrease?

Economists predict what the FED will do in 2025 - How much will interest rates decrease? Economists at Paidenreiger Asset Management predict significant changes in the US economy by the end of 2025, including the possibility of increasing unemployment rates and the Fed cutting interest rates more aggressively than expected. In the latest economic outlook report, economists predict that core inflation, an important gauge closely watched by the Fed, could fall below the 2% target at some point in 2025. However, this improvement in inflation is expected to coincide with an increase in the unemployment rate, which is projected to rise to 4.4% or higher by the end of 2025. With declining inflation and increasing unemployment, the Fed could respond by cutting interest rates aggressively beyond the current market expectations. The report suggests that the Fed could cut rates by more than 35 basis points, which is currently anticipated by the US currency market. Paidenreiger's analysis shows that the optimal federal fund rate could be as low as 3.3%, which would require at least four rate cuts by 2025. The Fed has started cutting interest rates, cutting its benchmark interest rate by a full percentage point in each of the three meetings since September. But central bankers have signaled a slower pace of cuts in the future. According to the Fed's latest economic forecast, policymakers expect to cut interest rates by only three-quarters of a percentage point by 2024. Forecasts emphasize the delicate balance that the Fed must navigate as it steers a cooling economy. While controlling inflation remains a top priority, the rising unemployment rate poses a challenge for policymakers in maintaining economic stability.