Fed Cuts Rates to 4.25%-4.50% in Third Consecutive Cut, Signals Fewer Cuts in 2025

Dec 18, 2024, 07:37 PM

The Federal Reserve has cut its key interest rate by 25 basis points to a range of 4.25% to 4.50%, the lowest level since January 2023, marking its third consecutive rate cut this year and bringing the cumulative reduction since September to a full percentage point. The central bank signaled that it expects to reduce rates more slowly in 2025 than previously anticipated, projecting only two rate cuts instead of the four envisioned earlier. The decision reflects concerns over still-elevated inflation and solid economic growth.