Billionaire investor John Paulson has predicted that the U.S. Federal Reserve will cut interest rates as low as 2.5 percent by the end of 2025. Paulson said the Fed is moving too slowly to cut rates and will take steps to lower them in the coming months. In an interview with Bloomberg TV, Paulson estimated that the federal funds rate could fall to 3 percent, or even 2.5 percent, next year. He noted that keeping real interest rates high (the gap between bond yields and the current rate of inflation) means the Fed has fallen behind in easing monetary policy. Paulson also stressed that comments from the president and the Treasury secretary on economic policy are critical.