Fed cuts by a quarter point, indicates fewer reductions ahead
On Wednesday, the Federal Reserve reduced its key interest rate by a quarter percentage point, marking the third consecutive reduction. This decision came with a cautionary message regarding the possibility of further decreases in the coming years.
The Federal Open Market Committee, in a move that was widely anticipated by the markets, lowered its overnight borrowing rate to a target range of 4.25% to 4.5%. This adjustment brings the rate back to the level it was in December 2022, before a series of increases. In delivering the 25 basis point cut, the Fed indicated that it probably would only lower twice more in 2025
For more information read more at:
https://www.cnbc.com/2024/12/18/fed-rate-decision-december-2024-.html
The Federal Reserve lowers interest rates again — but hints at fewer cuts next year
The Federal Reserve lowered interest rates on Wednesday, but policymakers signaled caution about additional rate cuts next year in the face of stubborn inflation.
Read more on potential Fed outlook for 2025:
https://www.npr.org/2024/12/18/nx-s1-5230508/federal-reserve-interest-rates-economy-inflation
The Fed cut interest rates by another 25 basis points—here’s what will get cheaper
The rate was lowered by 25 basis points to a target range of 4.25% to 4.50% — a full 1% drop since September. The federal funds rate influences borrowing costs for credit cards, loans, auto financing and, more indirectly, mortgages.
Read more on How the rate cut could affect your wallet:
https://www.cnbc.com/2024/12/18/fed-cuts-interest-rates-by-25-basis-points-what-will-get-cheaper.html