ormer member of the U.S. Federal Reserve, James Bullard, spoke to a newspaper about his predictions regarding the inflation outlook and interest rate cuts throughout this year.
In this regard, Bullard made the following statements:
Core personal consumption inflation may drop to 2.3% by the end of 2025, down from 2.8% at the end of last year. Inflation is expected to continue declining towards the 2% target, but will remain slightly above it. The U.S. Federal Reserve managed to reduce inflation post-pandemic without causing a recession. As markets recognized the success of the Federal Reserve, they adjusted bond prices and helped prevent the yield curve of Treasury bonds from inverting. It seems that the Federal Reserve is on track for two additional interest rate cuts of 0.25% in 2025. A rate cut in March appears unlikely, with a possibility of a cut later in the spring.
