The Federal Reserve lowered interest rates for the third consecutive time, signaling a cautious approach to further reductions in the coming years.
The Federal Reserve on Wednesday lowered its key interest rate by a quarter percentage point, the third consecutive reduction. The cut brings the overnight borrowing rate to a target range of 4.25%-4.5%, back to the level where it was in December 2022. While the decision was widely anticipated, the Fed signaled it likely would only lower rates twice more in 2025, according to the 'dot plot' matrix of individual members' future rate expectations.
This represents a reduction in the committee's intentions from its September update. Officials indicated two more cuts in 2026 and another in 2027. The committee sees the 'neutral' funds rate at 3%, 0.1 percentage point higher than the September update. Cleveland Fed President Beth Hammack dissented, wanting the Fed to maintain the previous rate.
INTEREST RATES FEDERAL RESERVE ECONOMY INFLATION MONETARY POLICY
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed Cuts Interest Rates for Third Time, Signals Cautious ApproachThe Federal Reserve lowered its key interest rate by a quarter percentage point on Wednesday, marking the third consecutive reduction. While the decision was widely anticipated, the Fed's projections suggest only minimal further cuts in the coming years.
Read more »
Fed set to slash interest rates, signal fewer cuts next year in fresh dot plotThe US Federal Reserve (Fed) will announce monetary policy decisions following the December policy meeting on Wednesday.
Read more »
Fed Cuts Interest Rates to Combat InflationThe Federal Reserve lowered interest rates for the second time in a row, aiming to stimulate the economy and combat inflation. The move is expected to have a ripple effect on borrowing costs for various financial products.
Read more »
Dozens of retailers jacked up interest rates on store cards ahead of Fed cutsDozens of retailers, including Macy's, Gap and TJ Maxx, increased APRs on their store credit cards before the Federal Reserve cut rates, padding their profits.
Read more »
Fed Cuts Interest Rates Again, Aiming to Combat InflationThe Federal Reserve lowered interest rates for the third time this year, aiming to stimulate the economy and curb inflation. The rate cut, which brings the target range to 4.25% to 4.50%, follows previous reductions in September and October. Federal Reserve Chair Jerome Powell expects inflation to continue declining towards the 2% target, although the path may be uneven. While the rate cut could lead to lower borrowing costs for some, borrowers with adjustable rates may still see increases depending on market conditions.
Read more »
Fed Cuts Interest Rates Again, But Will You Really See Savings?The Federal Reserve has lowered interest rates for the fourth time this year, aiming to stimulate the economy. While this could lead to lower borrowing costs for some, the impact will vary depending on individual factors like loan size, credit score, and market conditions. Experts warn that inflation concerns could lead to a change in course by the Fed.
Read more »