Estimated Rate Cuts 2025. Inflation is now expected to hit the 2%. The year 2025 is expected to see interest rate cuts from the fomc, but at a relatively slow rate, with two cuts the most likely scenario.

The dot plot indicates the governors’ expectations for 50 basis points of rate cuts in 2025, which would bring the fed fund rate to a range of 3.75% to 4%. A rate hike in 2025 doesn’t appear to be a likely outcome. the fed projects a strong us economy in 2025 with no recession ahead.