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Federal Reserve Lowers Rates, Signals Shift to Buyers' Market

5/25/2025

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Story summary
  • The Federal Reserve lowered short-term interest rates by 0.25% on December 18.
  • Expected rate cuts for 2025 were revised from four to two.
  • Fed Chair Jerome Powell stated inflation progress is now anticipated by 2027.
  • U.S. home prices may decline by 1% in late 2025 due to rising supply and falling demand.
  • Analysts note a shift towards a buyers' market with more sellers than buyers.