Fed signals smaller rate cuts in 2025 amid high inflation and trade risks

Fed signals smaller rate cuts in 2025 amid high inflation and trade risks

Fed signals smaller rate cuts in 2025 amid high inflation and trade risks On December 18, 2024, the FOMC reduced the federal funds rate by 25 basis points to a range of 4.25% to 4.5%, marking its third consecutive cut. However, more focus was on the committee’s updated monetary policy outlook for the next three years: FOMC members now predict only 50 bps in rate cuts for 2025 — half of September's estimate — indicating that higher interest rates may persist longer than previously expected. Source: https://www2.deloitte.com/us/en/insights/economy/spotlight/fed-rate-cuts-and-us-labor-market-trends.html