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Shocking Stat: Federal Funds Rate Jumps to 4.0% by 2025!

The Federal Open Market Committee (FOMC) has revised its projections. The midpoint of the target level for the federal funds rate is now set at 4.0% by the end of 2025, up from the previous 3.875%. The long run range has shifted to 2.6% to 3.6% from 2.8% to 3.6%. GDP growth forecasts have been adjusted downwards. For 2025, the projected change in real GDP is now between 1.5% and 1.9%, down from 1.8% to 2.2%. Projections for 2026 and 2027 also show a slight decrease. Unemployment rates are expected to hover between 4.3% and 4.4% in 2025, with minor fluctuations projected for the following years. Inflation forecasts have been revised upwards. PCE inflation for 2025 is now expected to be between 2.6% and 2.9%, up from 2.3% to 2.6%. Core PCE inflation projections for 2025 have also increased to a range of 2.7% to 3.0% from 2.5% to 2.7%. These statistics highlight significant shifts in economic expectations.

Source: www.calculatedriskblog.com

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