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 is expected to cut rates on Wednesday. Wall Street is focused on how much, and on what comes next.

Yahoo Finance senior reporter Alexandra Canal joins Seana Smith and Madison Mills on Catalysts to break down the Federal Reserve's dot plot and what to expect from Wednesday's FOMC policy meeting. The Fed will update its dot plot,