Market analysis: Traders will pay close attention to the Federal Reserve's interest rate cut expectations
Internet reports that before the Federal Reserve releases its second forward-looking dot chart for 2025, it is necessary to review officials 'latest forecasts since March. At that meeting, officials expected GDP growth to slow to 1.7% this year, unemployment to rise to 4.4%, and the Fed's favored PCE inflation indicator would show prices will rise by 2.7% in 2025 as tariffs slow economic growth and drive up costs. Perhaps most importantly, the median expectation of officials is that the Fed will cut interest rates twice during the rest of 2025, followed by two more cuts in 2026. When the new dot chart is released at 2 o'clock tonight, the forecast of interest rate cuts will be one of the first data to attract investors 'attention.
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