@memento-mori
❗️FOMC Forecasts a 50bps Rate Cut in 2025 to 3.9%
The Federal Reserve has revised its macroeconomic projections, signaling a slowdown in economic growth:
📉 GDP: Expected growth for 2025 has been downgraded from 2.1% to 1.7%.
📈 Unemployment: Forecast raised from 4.3% to 4.4%, indicating a cooling labor market.
🔥 PCE Inflation: Now expected at 2.7% instead of 2.5%, which could delay monetary easing.
⚠️ Core PCE Inflation also revised up from 2.5% to 2.8%, highlighting persistent price risks.
The Fed also plans to slow the pace of quantitative tightening (QT), which could help support market liquidity.
💡 Markets are already pricing in potential policy easing in 2025, but will it be enough to spark a new asset rally?
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