Fed Cut Rates 2025 Impact. The fed has cut by a cumulative 1 percentage point since initiating cutting in september 2024. Today’s median projection for the end of 2025 rose by 50 basis points from three months ago, to 3.875%, so only 2 cuts of 25 basis points each in 2025, compared to the 4 cuts.
Fed officials predicted that they will cut rates to 3.9 percent in 2025 in their fresh economic estimates — suggesting that they will make just two rate cuts next year. The view on rate cuts for 2024 remained unchanged;