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Fed Fund Rates Going Forward

Expected Reductions

Continued global economic growth 

 

The global economy is set to grow at slightly a faster pace next year - by 3.3%, a pickup from the 3.2% rate of expansion it estimates for this year - as inflation continues to cool, but could falter if tariffs rise and governments fail to narrow wide budget deficits.

 

It expects the Federal Reserve’s key rate to fall to between 3.25% and 3.5% by the first quarter of 2026: The rate is currently set in a range between 4.5% and 4.75%. (OECD, Organization for Economic Cooperation and Development)

 

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