After the Fed interest rate decision, dot-plot also came

The US Federal Reserve (Fed) announced the interest rate decision that the whole world is eagerly waiting for last night and made a big discount of 50 basis points. Beyond this discount, the expectations of the Fed and its members for the future were also important. Looking at the expectations, also known as dot charts, Fed members think that more discounts should be made in 2025.

Author Hakan Ateşler

The Fed, which entered the monetary tightening period with an interest rate increase of 25 basis points in March 2022, officially ended this trend after about 2.5 years. The Fed, which has kept interest rates fixed for 1 year and has not reduced interest rates for 4.5 years, made its entry with a discount of 50 basis points.

What does Dot-plot say?

While most of the Fed members expect more discounts for the rest of 2024, they think that these reductions should continue in 2025. From the members who are currently in the range of 4.75%-5.0% waiting for the interest rates to decrease;

7 of them are 25 basis points,

9 of 50 basis points,

1 of them thinks that an extra discount of 75 basis points should be made.

2 members are of the opinion that there will be no more discounts this year...

There is more discount expectation in 2025

Members' 2025 expectations are also important... Total interest rate reduction expectations for next year are as follows:

1 member 75 basis points

1 member 100 basis points

3 members 125 basis points

6 members 150 basis points

6 members 175 base points

2 members 200 basis points

10 members also think that interest rates should fall below 3% in 2026.