Interest rates are expected to undergo significant changes over the next five years as the Federal Reserve responds to inflation. In 2024, one or two rate cuts may occur, but rates will likely remain above 5%. By 2025, more aggressive cuts could lower rates to around 4.1%, stimulating economic growth. In 2026, further cuts may bring rates to 3.00% – 3.25%, establishing a new normal. By 2027, rates are projected to stabilize around 2.9%, focusing on long-term economic growth while maintaining predictability for borrowers and savers.
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