Billionaire John Paulson expects the Federal Reserve to lower interest rates to 2.5% by the end of 2025
ChainCatcher news, billionaire investor John Paulson predicts that the U.S. Federal Reserve will lower interest rates to as low as 2.5% by the end of 2025. Paulson stated that the Fed has been slow to act on rate cuts and will take measures to lower rates in the coming months. In an interview with Bloomberg Television, he estimated that the federal funds rate could drop to 3% next year, or even 2.5%. He pointed out that maintaining high real interest rates (the difference between bond yields and current inflation rates) means the Fed has fallen behind in easing monetary policy. He also emphasized that comments from the president and the treasury secretary on economic policy are crucial.