Current Inflation Rate 2025 Outlook Us. Fed chair jerome powell signaled in the december meeting that they now expect only two rate cuts in 2025 unless there’s meaningful progress toward their 2% inflation target. With the rate of housing inflation at half of what it was at the january 2023 peak, expect lessened wage inflation for the near term.
Our baseline forecast for 2025 calls for 2.5% growth, unemployment of 4.2% and pce inflation at 2.5%. These offsetting policy risks may also increase inflationary pressures.