Even with many of the major central banks around the world cutting their benchmark rates, the US Federal Reserve (Fed) has kept its benchmark interest rate – the Fed Funds rate – steady for its last three meetings. The Fed last cut interest rates in December, making it 100 basis points in three rate cuts for 2024.

Chicago Fed chief Austan Goolsbee called the April inflation report 'comforting' but said he needs to see several more as officials consider rate cuts

In 2025, the US Federal Reserve said that interest rates could be cut by the end of this year, from the current range of 4.25%–4.50% to 3.50%–3.75%. While this will ease the pressure to borrow, it will also reduce the returns on ordinary investments such as savings accounts and bonds.

Federal Reserve Bank of Chicago President Austan Goolsbee said lower borrowing costs are still possible over the next 10 to 16 months, even as the bar for rate cuts in the near term is “a little higher.

U.S. Federal Reserve Governor Christopher Waller said on Thursday he still sees a path to rate cuts later this year, in comments that observed market pricing levels show investors are worried current Republican budget plans are not doing enough to deal with the deficit.

Boston Federal Reserve President Susan Collins is growing less confident that interest-rate cuts will be appropriate this year, marking a shift from her stance at the central bank’s March meeting. In an interview with Barron’s on Thursday,