🚨 IMPORTANT 🚨
🔔 Federal Reserve Decision Summary – June 18, 2025
1️⃣ No Change in Rates:
The Fed holds interest rates steady for the 4th consecutive meeting, signaling a cautious approach.
2️⃣ Outlook Slightly Improved:
While uncertainty has lessened, the Fed notes it remains "elevated" in the current economic landscape.
3️⃣ Growth & Inflation Adjustments:
2025 GDP forecast cut to 1.4% (down from 2%)
2025 inflation projection raised to 3% (from 2.6%)
4️⃣ Rate Cut Expectations:
The Fed’s median projection shows 50 basis points of cuts in 2025.
5️⃣ Long-Term Rate Outlook:
2026: Projected rates at 3.6%
2027: Expected rates at 3.4%
6️⃣ Market Reaction:
Futures markets now increase the odds of rate cuts starting September 2025.
📉 Political Pressure:
Despite Fed caution, Trump pushes for aggressive 100 bps rate cuts ahead of the election.
