Another "hawkish" vote from the Federal Reserve: It may only cut interest rates by another 25 basis points this year

Atlanta Fed President Bostic said he expects the Fed to only cut rates by 25 basis points this year, despite a median forecast of 50 basis points. He emphasized that forecasts will be adjusted based on new data on inflation and the labor market. Bostic expects the U.S. economy to slow down but remain strong, with a GDP growth rate of around 2% in 2025. He believes that the Fed's benchmark interest rate will eventually fall to 3% to 3.5% in the long term, but the specific timing is still uncertain