The Federal Reserve is widely expected to cut interest rates for the third consecutive month on Wednesday as inflation continues to rise. The decision will be closely watched by policymakers and investors.
The rate decision follows two consecutive months of rising inflation.Policymakers and investors will closely watch an announcement from the Fed on Wednesday setting the level of its benchmark interest rate, which helps determine loan payments for everything from credit cards to mortgages. The impending move marks the final interest rate decision before the inauguration of President-elect Donald Trump , who repeatedly criticized Fed Chair Jerome Powell during Trump 's first term in office.
A rate cut of that size would match the move taken by the Fed last month, and it would amount to a percentage point worth of cuts made in a matter of months since the central bank opted to start dialing back its fight against inflation in the fall. The widely expected rate cut on Wednesday may prove the Fed's last for many months, however, experts previously told ABC News. A recent bout of stubborn inflation could prompt central bankers to freeze interest rates in place as they bring price increases under control. A humming economy, meanwhile, shows little need for the jolt of activity that lower borrowing costs may provide, the experts said. Consumer prices climbed 2.7% in November compared to a year ago, marking two consecutive months of accelerating inflation, government data last week showed. Inflation has slowed dramatically from a peak of more than 9% in June 2022. But the recent uptick has reversed some progress made at the start of this year that had landed price increases right near the Fed's target of 2%. In August, Trump said the president should have a role in setting interest rates. The proposal would mark a major shift from the longstanding norm of political independence at the Fe
FED INTEREST RATES INFLATION ECONOMY TRUMP
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