pencil

In their quarterly dot plot, Fed officials penciled in two more quarter-point rate cuts in 2025, after the central bank lowered its target rate in September for the first time this year.

The economic outlook has shifted considerably from earlier this year, with economists penciling in more growth and less inflation than previously expected.

That tracks the projections of Fed policymakers, who cut rates a quarter point last month and penciled in two more rate cuts this year amid concerns about the abrupt slowing in job growth.

This isn’t what many investors had penciled in.

But a substantial minority of seven officials penciled in no further reductions this year, highlighting a thorny consensus-building exercise facing Fed Chair Jerome Powell.