Federal Reserve official Raphael Bostic recently signaled a single interest rate cut in 2025, driven by economic uncertainty and concerns about persistent inflation. This shift reflects the Fed’s cautious approach as it anticipates slower growth in the US economy. 2025’s projected growth range is between 1% to 0.5%, raising questions about potential recession. Bostic believes this adjustment is needed to reflect a more nuanced policy, considering inflationary challenges and uneven price growth. This means that while market expectations have been anticipating two rate cuts, the focus has shifted to one single reduction in order to manage inflation without risking further economic slowdown.