Fed’s Cautious Approach: June Likely Earliest for Rate Cuts as 2025 Outlook Takes Shape

The Federal Reserve has seven remaining meetings in 2025, with markets anticipating two to three interest rate cuts likely weighted toward the second half of the year.

While March and May meetings are expected to maintain current rates (4.25-4.5%), cuts become increasingly probable starting with the June 18 or July 30 meetings.

The Fed’s decision-making will balance inflation’s progress toward the 2% target against potential economic slowdown concerns, with Jerome Powell emphasizing they “don’t need to be in a hurry” to reduce rates.