Will The Fed Lower Interest Rates In 2025. There are two motivations for the federal open market committee to cut rates. The median fed official now expects interest rates to be somewhat higher in 2025 and 2026 than they did in december — anticipating fewer rate cuts.

The chance that interest rates remain at their current level by december. The pace of interest rate cuts will slow in 2025 as the federal reserve (fed) released its updated summary of economic projections (sep) and dot plot as part of its.