US Federal Reserve lowers interest rates, signals slower cuts for 2025
India TV NewsThe Federal Reserve cut its benchmark interest rate by a quarter for the third consecutive time. Future outlook: Moderate reductions expected by 2025 Another quarterly outlook indicated only two rate cuts in 2025, with officials predicting government rates to reach 3.75 per cent-4 per cent by the end of that year. Fed Governor Michelle Bowman warned that inflation would remain uncomfortable above the 2 per cent target, although some officials believed housing costs and other factors could slow inflation. Fed President Jerome Powell noted that labour market risks have eased, although the Fed expects unemployment to remain at 4.3 per cent by 2025. Economic growth revised upward The Fed revised its economic growth forecast for 2025, projecting a 2.1 per cent expansion, reflecting confidence in the economy’s resilience even as the central bank navigates inflationary pressures and labor market uncertainties.