Billionaire John Paulson expects the Federal Reserve to cut interest rates to 2.5% by the end of 2025.
Billionaire investor John Paulson has predicted that the US Federal Reserve will cut interest rates as low as 2.5% by the end of 2025. Paulson said that the Federal Reserve is moving too slowly in cutting interest rates and will take steps to lower them in the coming months. In an interview with Bloomberg TV, it estimated that the federal funds rate could fall to 3% or even 2.5% next year. He pointed out that maintaining high real interest rates (the gap between bond yields and the current inflation rate) means that the Federal Reserve has fallen behind in easing monetary policy. Finally, it was also emphasized that the comments of the president and the Treasury secretary on economic policy are crucial.