The Fed sent shock waves through markets on Wednesday with a sobering outlook for rates and inflation in 2025. While we may be at the start of the correction, this is no time to panic. Stocks and bonds tanked after Federal Reserve Chair Jerome Powell delivered a message nobody wanted to hear: Inflation is moving sideways and investors should only expect two more quarter-point cuts in 2025, a letdown from previous forecasts for deeper cuts and more progress on inflation.