The Congressional Budget Office predicts that the Federal Reserve will cut interest rates slightly this year.

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According to ChainCatcher, citing Jinshi, the Congressional Budget Office (CBO) predicted on Thursday that the Federal Reserve may further cut interest rates slightly this year to address downside risks in the labor market. The CBO indicated that it expects interest rates to fall to 3.4% in the fourth quarter and remain at that level until 2028. Meanwhile, the CBO predicts that the US unemployment rate will fall to 4.6% this year, while the Fed's preferred PCE inflation rate will fall to 2.7%.

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