All forecasts are estimates at best ... That won't happen without both weaker inflation and labor data as well as another Fed rate cut in December. Looking further out, experts say rates could fall into the mid-5% range later next in 2025.

Ongoing economic growth, a solid job market, and inflation that remains above the 2% target means the U.S. central bank does not need to rush to lower interest rates and can deliberate carefully, Federal Reserve Chair Jerome Powell said on Thursday.

A rapid slowdown in the rate of U.S. inflation appears to have lost steam, potentially raising questions about how aggressively the Federal Reserve will cut interest rates early next year.

The Federal Reserve cut interest rates by 0.25% on November 7. More interest rate cuts are likely through the end of 2026.

When the Federal Reserve lowered its benchmark interest rate by half a percentage point in September, it wasn't a particularly surprising move. At that point, the Fed was expected to make its first rate cut of the year in response to cooling inflation.

New reports suggest the chance of a rate cut for homeowners before the next federal election is unlikely. Reserve Bank Governor Michele Bullock says the economy is running at a level that cannot be sustained without inflation.