❗️ ACCOMPANYING LETTER #FED

❗️ The Fed predicts only two rate cuts in 2025.

❗️ Fed forecasts suggest a rate reduction of 50 basis points in 2025 and another 50 basis points in 2026.

▫️ The neutral rate forecast has been raised from 2.9% to 3.0%.

▫️ Economic activity continues to grow at a confident pace.

▫️ Labor market conditions have improved since the beginning of the year.

▫️ Unemployment has risen but remains low.

▫️ Inflation has approached the 2% target.

▫️ Risks related to the Fed's dual mandate (inflation/labor market) are balanced.

▫️ Economic prospects remain uncertain.

▫️ Further Fed monetary policy depends on macroeconomic data.