The central bank’s economic projections also showed another full percentage point of interest rate cuts in 2025, while rates are expected to settle near 2.9% in the following years.Fed officials expect the unemployment rate to rise by the end of the year and remain elevated into 2025 before moving lower in the longer run.

The Federal Reserve’s so-called dot plot, which the US central bank uses to signal its outlook for the path of interest rates, shows the median year-end projection for the federal funds rate fell to 4.

The Federal Reserve's new interest-rate expectations, known as the 'dot plot' forecasts, due at next week's meeting are unlikely to keep pace with current heightened rate-cut expectations, Elmar Voelker,