Economists at Paidenreiger Asset Management predict significant changes in the U.S. economy by the end of 2025, including a potential rise in unemployment and a sharper-than-expected cut in interest rates by the Fed. They predict that core inflation could fall below the Fed's 2% target in 2025, leading to a potential increase in the unemployment rate to 4.4% or higher. In response to these conditions, the Fed could make aggressive rate cuts that exceed market expectations, potentially lowering the federal funds rate to 3.3% and requiring at least four rate cuts in 2025. However, the Fed has signaled a slower pace of cuts in the future. These forecasts highlight the challenges the Fed faces in maintaining economic stability amid cooling economic conditions. This is not investment advice.



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