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Interest-Rate Forecast: What’s Next?

Investing Insights

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The Fed Will Cut Rates Early Next Year

Janice Henderson: We think that the Fed can cut rates a good deal and restimulate economic growth without provoking a rebound in inflation. The overall supply side of the economy is expanding in capacity as the disruption from the pandemic finally really fades, she says. And so we expect the federal funds rate ultimately to dip all the way down to below 2% by mid 2025.

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