Fed delivers third rate cut of the year, but signals fewer cuts ahead
Investing.com -- The Federal Reserve cut interest rates by 25 basis points on Wednesday, but reined in the number of rate cuts ahead on concerns about sticker inflation amid a brighter economic outlook.It what was the third rate cut of the year since the first cut in September, Fed members now appear to be easing away from a deep rate cut cycle, betting on fewer rate cuts ahead.
In the run up to the Fed meeting, Fed members have expressed concerns that inflation could be stalling above the 2% target and called for a more cautious approach to rate cuts. The incoming Donald Trump administration has also muddied investor expectations on the rate cut outlook. Trump’s policies including tariffs are expected to be inflationary and pro-growth, stymying the Fed’s battle against inflation.
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