As of June 3, 2025, the U.S. Federal Reserve has not implemented any new interest rate cuts since its significant 50 basis point reduction in September 2024, which brought the federal funds rate down to a range of 4.75% to 5.00%. Looking ahead, Federal Reserve officials have indicated the possibility of rate cuts later in 2025, contingent upon economic conditions. Federal Reserve Governor Christopher Waller mentioned that if core inflation trends toward the Fed’s 2% goal and the labor market remains strong, he would support rate cuts. Similarly, Chicago Fed President Austan Goolsbee stated that the Fed is likely on track to lower short-term interest rates within the next 15 months, assuming current economic conditions persist and recent tariff policies do not escalate significantly. Market participants are also anticipating potential rate cuts, with traders maintaining expectations for a rate cut in September 2025, following data showing a slight cooling in inflation. For investors on platforms like DigiTrades, these developments suggest a potential shift in monetary policy that could impact investment strategies. It's advisable to stay informed on Federal Reserve communications and economic indicators to make well-informed investment decisions.
