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Fed set to cut rates for third and final time this year


Published on 2024-12-18 20:41:08 - CNN
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  • The Federal Reserve is expected to cut interest rates again Wednesday, but President-elect Donald Trump's economic policies could thwart the central bank's progress on inflation.

The Federal Reserve decided to maintain the current interest rates at their December 18, 2024, meeting, keeping the benchmark rate steady at a range of 5.25% to 5.5%. This decision reflects the Fed's ongoing efforts to manage inflation while supporting economic growth. Fed Chair Jerome Powell emphasized that the central bank is prepared to adjust policy if risks emerge, but for now, they are adopting a wait-and-see approach. The Fed's statement highlighted that inflation has eased but remains above the target, and economic activity has been expanding at a moderate pace. Additionally, the Fed revised its economic projections, slightly lowering the expected rate of GDP growth for the next year while indicating that they anticipate fewer rate cuts than previously thought, signaling a cautious approach to monetary policy tightening.

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