2025 started at a moderate to slow rate, with high market volatility projected in the coming weeks and months. The opening economic outlook also projects a slow, just above 2% economic growth for the year, and the core inflation has yet to return to the Federal Reserve’s 2% target. Also, after multiple rate cuts in 2024, the Fed is unlikely to be able to cut its policy rate target below a 3.75%–4% range.
According to the U.S. Bureau of Labor Statistics report, after remaining constant for four months, the Consumer Price Index for All Urban Consumers increased 0.4% in December and 0.3% in November on a monthly basis.
