John Luke Tyner, head of fixed income at Aptus Capital Advisors, predicts the Federal Reserve will lower interest rates twice in 2025. This prediction stems from the Fed’s focus on labor market conditions and signs of easing price pressures. However, doubts about the longevity of this rate-cutting cycle are expected as 2026 nears. Market projections indicate the Fed will cut interest rates three times in 2026, potentially reducing the federal funds rate to around 3%. As these easing measures take effect, there’s concern that economic activity might accelerate again. Moreover, factors like energy prices may stabilize or even increase, potentially leading to inflation data rebounding.