The US Federal Reserve recently reduced the federal fund interest rate and hinted at a cautious approach for future rate cuts. However, experts suggest that there is a 40% probability of an interest rate increase in 2025. Apollo Global Management predicts this rate hike and cites concerns about the US inflation rate, which has been steadily growing. The US economy's strength is a key factor in these rate hike predictions, as robust economic activity can contribute to sustained inflationary pressures. Ultimately, the potential for rate hikes in 2025 highlights the delicate balancing act facing policymakers as they consider economic strength versus inflation concerns.



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