Rate Cuts 2025 Us. Our strategists believe that there will likely be two additional rate cuts in 2025, and expect the cuts to continue into 2025. In 2025, for example, nine of the central bank’s 19 officials expect rates to end the year at about 4.4 percent, half a point below where they stand after the jumbo rate cut on.

Rate cuts would, over time, lead to lower costs for home and auto loans, credit card borrowing and business loans. Federal reserve officials cut interest rates on thursday, their second reduction of 2025 and the latest sign that policymakers believe that inflation is finally coming under control.