Trump administration, Federal Reserve, and CBO release conflicting economic forecasts for next four years
1. Federal Reserve cuts interest rates amid weakening labor market signs. 2. GDP growth expected to slow to 1.6% in late 2025. 3. PCE inflation projected to rise to 3% by Q4 2025. 4. Unemployment rate forecast to reach 4.5% in Q4 2025. 5. Trade policy changes add uncertainty to economic growth outlook.