Economic Outlook and Interest Rate Projections

The Federal Reserve's decision to lower benchmark interest rates by a quarter point for the third consecutive time is seen as a complex move amidst ongoing economic uncertainties. Former Dallas Fed President Robert Kaplan highlights that further rate cuts next year may be limited and contingent on observable improvements in inflation. With a historically high deficit and imminent structural changes under the new administration, the economic landscape is expected to be volatile, raising questions about the future of fiscal policies. As Kaplan notes, the projections are subject to change, mirroring the dynamic nature of current economic conditions.