Economist: U.S. unemployment rate could reach 4.4% or higher by the end of 2025

According to a report on economic prospects, economists at Padinglaigel Asset Management Company stated that the Federal Reserve's interest rate cuts in 2025 may exceed market expectations as inflation falls and unemployment rises. They said that the Fed's preferred core inflation indicator could fall below 2% at some point in 2025, and by the end of 2025, the US unemployment rate could reach 4.4% or higher. They also said that the Fed could "easily" cut interest rates by more than the 35 basis points expected by the US currency market for 2025. The optimal level for the federal funds rate would be 3.3%, which means that at least four interest rate cuts would be needed by 2025.