CoinVoice has learned that, according to Forbes, economists and financial market participants indicate that the Federal Reserve is very likely to announce a 25 basis point rate cut in the early hours of the 19th, but perhaps more noteworthy is what signal the Federal Reserve will send regarding its monetary policy goals for 2025.
Currently, economists from the three major investment banks in the United States, Bank of America, Goldman Sachs, and JPMorgan Chase, predict that the Federal Reserve will lower interest rates by 25 basis points from 4.5%-4.75% to 4.25%-4.5%. This will bring rates to the lowest level since February 2023, a full percentage point below the 5.25%-5.5% range from July to September 2023.
However, despite the clear consensus in the market, the Federal Reserve will also release its quarterly economic forecasts. These include each central bank president's expectations for interest rates in 2025. Economists at Bank of America, Goldman Sachs, and JPMorgan Chase expect that the median forecast will be reduced from four 25 basis point cuts next year to three, with an expected target range of 3.5%-3.75% by the end of 2025. Regardless, it is clear that Americans will need to adapt to higher interest rates over a longer period, as rates are likely to remain above 3% for an extended time—a level that was never reached from 2009 to 2021. [Original link]