Billionaire John Paulson expects the Fed to cut rates to 2.5 per cent by the end of 2025

Billionaire investor John Paulson has predicted that the US Federal Reserve will cut interest rates to as low as 2.5 per cent by the end of 2025. Paulson said the Fed is moving too slowly to cut rates and will take steps to lower them in the coming months. In an interview with Bloomberg Television, Paulson estimated that the federal funds rate could fall to 3 per cent or even 2.5 per cent next year. He noted that keeping real interest rates (the gap between bond yields and current inflation) high means the Fed has fallen behind in easing monetary policy. Paulson also emphasised that comments on economic policy from the President and the Treasury Secretary are crucial.