Fed Officials Increase Forecasts for Level of Rates in 2025, 2026 (2024)

FAQs

What is the Fed rate forecast for 2025? ›

The median estimate for the fed-funds rate target range at the end of 2025 moved to 3.75% to 4%, from 3.5% to 3.75% in December.

By yearend 2026, 11 of the 19 FOMC members projected the Fed funds rate range to be between 2.75% to 3.25%. These assumptions are based on inflation stabilizing at 2.0% by 2026.

The average 30-year fixed mortgage rate as of Thursday was 6.99%. By the final quarter of 2025, Fannie Mae expects that to slide to 6.0%.

During its May meeting, the Federal Reserve unanimously voted to hold policy rates steady for the sixth consecutive time, leaving the federal funds target rate unchanged at 5.25% to 5.5%.

GDP growth in the United States is projected to be 2.6% in 2024, before slowing to 1.8% in 2025 as the economy adapts to high borrowing costs and moderating domestic demand.

Global inflation is forecast to decline steadily, from 6.8 percent in 2023 to 5.9 percent in 2024 and 4.5 percent in 2025, with advanced economies returning to their inflation targets sooner than emerging market and developing economies. Core inflation is generally projected to decline more gradually.

The 10-year treasury constant maturity rate in the U.S. is forecast to decline by 0.8 percent by 2026, while the 30-year fixed mortgage rate is expected to fall by 1.6 percent. From seven percent in the third quarter of 2023, the average 30-year mortgage rate is projected to reach 5.4 percent in 2026.

Interest rate predictions in the UK in 2025 and beyond suggest a period of cautious adjustment following the expected easing in 2024. Bank of England interest rate forecasts for 2025, informed by market analysts and financial institutions, anticipate rates to stabilise around 3-3.4%.

But until the Fed sees evidence of slowing economic growth, interest rates will stay higher for longer. The 30-year fixed mortgage rate is expected to fall to the mid-6% range through the end of 2024, potentially dipping into high-5% territory by the end of 2025.

What is the wild price prediction for 2025? ›

Wilder World price prediction 2025

The Wilder World price prediction for 2025 is currently between $ 0.719618 on the lower end and $ 3.39 on the high end. Compared to today's price, Wilder World could gain 375.41% by 2025 if WILD reaches the upper price target.

We forecast PCE inflation to slow to 2.0% y/y before the end of this year —much earlier than the Fed's estimate. Importantly, the SEP projects that the Federal Funds rate will fall to 4.6% in 2024, 3.9% in 2025, and 3.1% in 2026.

Economists like Zandi aren't expecting the Fed to raise interest rates, either. Instead, the Fed will likely continue to keep rates elevated — perhaps even until after the November general election so that it does not appear to favor one candidate or another.

Will mortgage rates go down in 2024? In Fannie Mae's April rate forecast, the government-sponsored enterprise said it expects 30-year fixed rates to end 2024 at 6.4%. The Mortgage Bankers Association also predicts the rate will drop to 6.4% by the end of the year.

An interest rate forecast by Trading Economics, as of 12 May, predicted that the Fed Funds Rate could hit 5.25% by the end of this quarter - a forecast that has been materialised. The rate is then predicted to fall back to 3.75% in 2024 and 3.25% in 2025, according to our econometric models.

Interest Rates for 2021 to 2027. CBO projects that the interest rates on 3-month Treasury bills and 10-year Treasury notes will average 2.8 percent and 3.6 percent, respectively, during the 2021–2027 period. The federal funds rate is projected to average 3.1 percent.

Federal Reserve says interest rates will stay at two-decade high until inflation further cools.

While we do not forecast a recession in 2024, we do expect consumer spending growth to cool and for overall GDP growth to slow to under 1% over Q2 and Q3 2024. Thereafter, inflation and interest rates should gradually normalize and quarterly annualized GDP growth should converge toward its potential of near 2% in 2025.