It’s been a year since the Federal Reserve made a move on interest rates. But that trend may soon end: CME Group’s FedWatch tool shows an 88.8% chance of a quarter point cut and 11.2% of a half-point cut expected at the Fed’s meeting next week. Combine that with predicted cuts at its final two meetings of the year in October and December as well, 2025 could theoretically end with a benchmark funds rate of 3.50% to 3.75%, three-quarters of a percentage point lower than they are now.
Rate cuts could be bad news for savers in the form of things like lower savings and CD rates (you can see some of the highest CD rates here, and savings rates here, from our partner Bankrate), but good news for borrowers in the form of things like lower mortgage rates, pros tell us. Here’s who the experts also said will be the biggest winners — and losers — in the event of a rate cut:
