BlockBeats news, December 19, analyst Catarina stated that further observation of the Federal Reserve's latest economic forecasts shows that the median long-term federal funds rate has risen to 3%. This was expected, as policymakers have been verbally supporting the view that the neutral rate is now higher. This ultimately means that the number of interest rate cuts will be reduced.
For next year, the Federal Reserve has raised its growth forecast, lowered its unemployment rate forecast, and significantly raised its inflation forecast. They believe that the core inflation rate, excluding volatile food and energy prices, will only decrease by 0.3 percentage points. Last year, after the Federal Reserve raised interest rates to the highest level in 20 years, prices rapidly cooled. This pace has slowed significantly this year, and it appears that this trend will continue until 2025. (Jinshi)