$USDC Announcement - Quick Summary

→ Interest rates remain at 4.25-4.5%

→ High inflation: Significant inflation warnings may arise in the near future, with a forecast for 2025 at 3%, much higher than the previous forecast (2.4%).

→ Uncertainty levels have decreased but remain high. Mainly referring to risks from tax policy. And note: the war has not yet been factored into the official forecasting model.

→ Interest rate cut forecasts for 2025: 7 members: No cut. 2 members: 1 cut. 8 members: 2 cuts. 2 members: 3 cuts.

The Fed says economic activity is still growing, but the ISM data does not reflect that – it may be a way to avoid lowering interest rates.

Finally, the Fed has not committed to a specific timeline for the next interest rate cut due to unclear impacts from tax and trade policy.