The Fed lowered the rate by 0.25%, which was already expected in recent days.
However, the forecasts pleasantly surprised regarding the American economy
1) GDP growth next year has been increased by 0.5% - that's quite significant
2) Inflation will even be lower in 2025, and the decrease in inflation is confirmed long-term
3) Unemployment has stabilized, and employment is improving in the forecast
4) The rate reduction was not touched... in 2026, only 1 reduction is expected. This is not great considering that keeping the rate at 3% with 2% inflation is not ideal.
However, the forecasts pleasantly surprised regarding the American economy
1) GDP growth next year has been increased by 0.5% - that's quite significant
2) Inflation will even be lower in 2025, and the decrease in inflation is confirmed long-term
3) Unemployment has stabilized, and employment is improving in the forecast
4) The rate reduction was not touched... in 2026, only 1 reduction is expected. This is not great considering that keeping the rate at 3% with 2% inflation is not ideal.
