FILE - Federal Reserve Board Chairman Jerome Powell speaks during a news conference at the Federal ... [ ] Reserve, Dec. 18, 2024, in Washington. (AP Photo/Jacquelyn Martin, File)

Fixed income markets anticipate that the Federal Reserve will cut interest rates in 2025, but not by much. Short-term interest rates are expected to end 2025 close to 4%. That’s down from the current 4.25% to 4.5% range as of January 2025. This is after the Fed cut rates in December 2024.

This forecast assumes that the U.S. economy continues to grow; unemployment remains slightly above 4%; and inflation ends 2025 close to 2.5%. These projections were the

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