Inside the Fed’s economic projections, ‘something isn’t adding up’ according to SoFi investment chief

Economic Projections - The U.S. Federal Reserve forecasts economic growth through 2028, with GDP estimates for 2025 increasing from 1.4% to 1.6%, and further growth to 1.8% in 2026 and 1.9% in 2027 [1] - The Fed projects a decline in the unemployment rate from 4.5% currently to 4.2% by 2028 [2] Interest Rate Decisions - Despite positive economic forecasts, the Fed cut interest rates, which is typically associated with recessionary conditions [2][3] - The Fed's dot plot indicates a decline in interest rates toward 3% over the next few years, suggesting more rate cuts than previously anticipated [3][4] Market Reactions - The S&P 500 reached a record high of 6,631.96, up 0.48% for the day and nearly 13% year-to-date, reflecting investor enthusiasm for lower interest rates [5] - Concerns arise from analysts like Liz Thomas, who suggest that the market may be overvalued or "frothy" due to the ongoing rate cuts [5]