The possibility of the FED making 3 interest rate cuts in 2025

DNVN - A senior official of the US Federal Reserve (FED) said that the agency could cut interest rates three to four times this year if inflation data continues to be positive.

In an interview with CNBC on January 16, FED Governor Christopher Waller said that inflation data for December 2024 showed positive signs. The core consumer price index (CPI) has approached the target when compared on a monthly basis, excluding food and gasoline groups.

Waller, a voting member of the Fed's Federal Open Market Committee (FOMC), has expressed his personal view that if inflation remains stable, the Fed could cut interest rates four times in 2025. However, if inflation does not meet expectations, the Fed could cut interest rates only twice. When asked about the timing of a possible interest rate change, Waller predicted that the change could happen in the first half of this year.

On January 15, the US Department of Labor released its December 2024 inflation report. According to the report, the consumer price index (CPI) increased by 0.4% compared to November. Compared to the same period last year, the CPI increased by 2.9% in December 2024, higher than the 2.7% increase in the previous month. The core CPI in December increased by 0.2%, down from the 0.3% increase in the previous four months.

The Fed has started its rate cut cycle since September 2024. By the end of December 2024, the total rate cut has reached 1 percentage point.

Thanh Mai (t/h)

Source: https://doanhnghiepvn.vn/quoc-te/kha-nang-fed-thuc-hien-3-dot-giam-lai-suat-trong-nam-2025/20250117102150962