#CorePCESignalsShift Core PCE Inflation Outlook for 2025
Core PCE inflation, the Federal Reserve's key measure, is projected to moderate to 2.5% by the end of 2025, aligning closer to the 2% target. In December 2024, the Fed reduced rates to 4.3% but signaled cautious rate cuts in 2025, depending on inflation trends. The U.S. economy remains robust, with projected growth around 2% for 2025, though proposed fiscal policies and global factors may introduce inflationary pressures. Continuous monitoring of economic indicators will guide future monetary policy decisions.