Dot plot interpretation: The Fed expects two rate cuts in
Posted: Tue Feb 18, 2025 4:39 am
12.19 The median of the Federal Reserve's December dot plot shows that the Federal Reserve expects to cut interest rates twice in , each by 25 basis points, while the expectation in September was to cut interest rates four times, each by 25 basis points; the Federal Reserve expects to cut interest rates twice in 2026, each by 25 basis points, which is consistent with the expectation in September.
Market expectations for the Fed's rate cut next year have dropped by 25 BP
12.19 U. interest rate futures price in the Federal Reserve to cut interest indonesia phone number list rates by about 49 basis points in , which is close to the 50 basis points predicted by the Fed's dot plot. Before the interest rate decision was announced, the market priced in a rate cut of 75 basis points.
2. Looking ahead to , what does Federal Reserve Chairman Powell have on his agenda?
1. Assess the impact of Trump’s policies: Trump has promised to make extensive reforms to tax, trade, immigration and regulatory policies, which may further stimulate consumer demand, restrict labor supply, and ultimately lead to rising inflation and falling unemployment. Powell needs to assess its combined impact.
Market expectations for the Fed's rate cut next year have dropped by 25 BP
12.19 U. interest rate futures price in the Federal Reserve to cut interest indonesia phone number list rates by about 49 basis points in , which is close to the 50 basis points predicted by the Fed's dot plot. Before the interest rate decision was announced, the market priced in a rate cut of 75 basis points.
2. Looking ahead to , what does Federal Reserve Chairman Powell have on his agenda?
1. Assess the impact of Trump’s policies: Trump has promised to make extensive reforms to tax, trade, immigration and regulatory policies, which may further stimulate consumer demand, restrict labor supply, and ultimately lead to rising inflation and falling unemployment. Powell needs to assess its combined impact.