Federal Reserve, Dot plot
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What is the Fed's outlook for interest rate cuts, inflation and jobs for the remainder of the year?
Federal Reserve policymakers projected inflation will rise to 3% in 2025 while unemployment will reach 4.5% as the central bank begins cutting rates after holding them steady all year.
The Fed cut rates by a quarter point, and its dot plot now signals two more reductions in 2025, bringing the benchmark toward 3.5%–3.75% by year-end as updated forecasts highlight stronger growth but rising risks to jobs.