Illya Gerasymchuk
Financial & Software Engineer
September 2025 FOMC dot plot suggests lower rates than in June 2025
September 2025 FOMC dot plot suggests lower rates than in June 2025
the new implied median for end of 2025 is ≈3.6%, which is lower than the ≈3.9% June figure
this means you should expect the Fed to cut another 50 bps/0.5% in the next 3 months - likely in two 25bps iterations
how will asset prices react to Fed's interest rate decision?
if the FOMC members suggest rates lower than in the June 2025 - expect an upwards rally in assets
if the FOMC members suggest higher or non-decreasing near future rates - expect a downward rally/profit taking in assets
