Fed Interest Rate Predictions 2025. Ing’s interest rate predictions indicate that in 2024, rates will start at 4%, with subsequent cuts to 3.75% in the second quarter, 3.5% in the third,. In addition, the fed’s terminal rate is now forecast to be 3.5% instead of 3.0%.
The federal reserve’s target rate probabilities for the end of 2025, published by the cme group, reflects the market’s expectations for the fed’s interest rate levels in 2025. The projections for the federal funds rate are the value of the midpoint of the projected appropriate target range for the federal funds rate or the projected appropriate target level for the federal funds rate at the end of the specified calendar year or over the longer run.