Interest Rate Increases 2025. The median fed official now expects interest rates to be somewhat higher in 2025 and 2026 than they did in december โ anticipating fewer rate cuts. The interest rate outlook in 2025.
The interest rate is expected to be reduced two or three more times in 2025, potentially leading to a total decrease of at least 100 basis points or possibly 125 basis points. The median fed official now expects interest rates to be somewhat higher in 2025 and 2026 than they did in december โ anticipating fewer rate cuts.