What is the Fed’s outlook on the economy?

The Fed’s monetary policy decisions continue to shape the economic landscape and long-term financial plans.
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Monetary Policy Decisions: What you need to know.

Here’s a quick snapshot of where things stand:

  • Rates remain steady at 4.25%–4.5% for the third straight meeting, as the Fed signals caution amid rising concerns about inflation and unemployment.

  • Growth is projected to slow to 1.4% in 2025, with inflation (PCE) still expected to exceed the 2% target at 3%.

  • While overall inflation is easing—CPI at 2.4% and PCE at 2.1%—core readings remain elevated.

  • Despite mixed signals, the Fed says economic activity is holding up.
Magnificent 7 Performance
The latest dot plot below suggests two rate cuts may still be on the table for 2025.

Key Takeaway

Volatility may continue, but long-term planning and a steady investment strategy remain your best tools through shifting cycles.

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