The Fed Will Cut Interest Rates At Least Twice in 2025, According to Wall Street. Here's What It Means for Stocks
The U.S. Federal Reserve was locked in a battle with soaring inflation throughout 2022 and 2023, which prompted the central bank to rapidly increase the federal funds rate (overnight interest rates). That triggered a steep climb in interest rates, including the 30-year fixed mortgage rate, which hit a two-decade high of 7.8% toward the end of 2023.
30 Year Mortgage Rate data by YCharts.
High rates can put the brakes on the economy. But inflation -- as measured by the Consumer Price Index (CPI) -- is now clearly trending toward the Fed's annual target of 2%, so the central bank recently started reversing its tight policy.
Source Fool.com
