Golden Finance reported that the Federal Reserve raised the federal funds rate target by 0.5 percentage points by the end of 2025. Citi economist Andrew Hollenhorst believes the Fed may be in a position where it doesn't know what to do. As core PCE rose 0.1% month-on-month in November and price increases are slowing, the Fed may ultimately cut interest rates more than currently expected. "In our base case, a weakening labor market will lead the Fed to cut interest rates at each subsequent meeting." This view is contrary to market expectations that the Fed will pause interest rate cuts in January. "But even if we are wrong, a sideways unemployment rate and slowing inflation are enough reasons to cut rates at least at every meeting except January."