Interest Rates: What Markets See the Fed Doing in 2025

• The Fed surprised markets with its interest rate outlook next year.
• Investors are eyeing a number of scenarios for 2025.
• Wall Street sees a prolonged Fed pause as likely, given strong growth and hotter inflation.

The Fed scrambled the market’s outlook for interest rates next year at its meeting this week, and investors are eyeing a number of possible policy outcomes as the central bank shifts its focus back to keeping inflation in check.