The Federal Reserve has cut interest rates for the first time this year, but investment commentators have flagged continued concerns around the US economy and fears of stagflation creeping in. But the pressure on the Fed to stimulate economic growth through rate cuts could have far-reaching implications. “We now think that the Fed will deliver another two 0.25% cuts by the end of 2025. But rates are unlikely to fall further from there, as solid growth drives a rebound in labour market activity and causes inflation to rise. Core PCE inflation – the measure targeted by the Fed – has risen from 2.6% in April to 2.9% in July.