25 March | Dollar

Head of Atlanta Fed forecasts one interest rate cut this year

Head of Atlanta Fed forecasts one interest rate cut this year

Raphael Bostic, President of the Federal Reserve Bank of Atlanta, currently projects just one interest rate reduction in 2025. Elevated import tariffs imposed by the US on key trading partners are impeding progress toward lower inflation.

The official stated that the Consumer Price Index should reach the Federal Reserve's 2% target by early 2027, consistent with his colleagues' forecasts released last week.

In a recent Bloomberg interview, Raphael Bostic pointed out that President Trump's unpredictable policy changes have made economic forecasting particularly challenging.

The Atlanta Fed president sees US economic growth slowing to 1.8% this year versus December's 2.1% estimate. He predicts unemployment will settle around 4.2% by December. In addition, tariffs could push inflation higher. However, the official cautions against forecast changes until Trump's policies take clearer shape.

Anton Volkov MarketCheese
Period: 01.05.2025 Expectation: 1000 pips
GBPUSD to test level of 1.34 again
25 April 2025 55
Brent sell
Period: 01.05.2025 Expectation: 660 pips
Trade uncertainty and excess OPEC+ supply are dragging down Brent
25 April 2025 40
Period: 29.04.2025 Expectation: 600 pips
USDCAD to head towards 1.39400 after rebounding from 1.38200
25 April 2025 35
Period: 02.05.2025 Expectation: 1669 pips
AUDCAD gains on potential easing of trade tensions between US and China
25 April 2025 35
Period: 30.04.2025 Expectation: 12000 pips
ETHUSD set to test upper boundary of downtrend channel
24 April 2025 90
Period: 25.04.2025 Expectation: 500 pips
AUDUSD to fall to 0.63000
24 April 2025 45
Go to forecasts