Fed rate cuts

2024 - 12 - 18

Fed Rate Cuts: A Rollercoaster Ride Into The Future! 🎢💸

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The Federal Reserve just cut rates again—hold on tight as we navigate the wild ride through interest rates and inflation!

The Federal Reserve made headlines recently with its latest interest rate cut, lowering the key rate by a quarter-point, bringing the federal funds rate down to between 4.25% and 4.50%. Economists from powerhouse firms like Bank of America and JPMorgan Chase are weighing in, projecting that while this might be the last cut for a while, we can still expect a few more adjustments in 2025! As everyone from traders to casual investors digest this news, it’s clear that the Fed is steering a careful course through choppy economic waters, aiming to stimulate growth without overheating inflation.

In a meeting that felt akin to a game of musical chairs, the Federal Reserve confirmed they are likely to adopt a slower pace of rate cuts moving forward. Wall Street had a bit of a rollercoaster experience post-announcement, with stocks dropping dramatically as investors reacted to the Fed’s projection of just two more rate cuts in 2025. This comes amidst fears of stubborn inflation lurking in the background, demanding a cautious approach from central bankers. Tensions run high as traders cling to every word from Fed Chair Jerome Powell, hoping for an optimistic glance at the economy's future.

Interestingly, despite the Fed's actions, inflation remains high, and the focus has shifted toward balancing economic growth while managing inflationary pressures. Powell himself hinted that the successful rate cutting cycle hinges on sustaining a healthy economy, with the recent cuts being part of a broader strategy. This situation feels somewhat paradoxical—a classic case of ‘less is more’, where the fewer cuts in sight could mean a more stable economic future in the long run!

As we navigate the impact of these interest rate cuts, it’s crucial to consider their implications. Lower interest rates typically lead to cheaper borrowing costs, encouraging spending and investments—definitely a positive for the average consumer wanting to buy a home or business wanting to expand! However, with inflation still on the rise, the Fed must tread carefully. In the end, it’s a balancing act that will keep economists, traders, and everyday folks alike guessing about what comes next. Now that’s a headline worth following!

Fun Fact: Did you know that the last time the Federal Reserve introduced these types of rate cuts, the U.S. saw its longest economic expansion in history? All eyes are on the Fed to see if history will repeat itself! And another interesting tidbit: the term "basis point" refers to a one-hundredth of a percentage point, so when the Fed cuts 25 basis points, they’re making a 0.25% rate change! Keep your eyes peeled; it’s about to get interesting!

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Image courtesy of "NBC News"

Federal Reserve interest rate cut: December 2024 -- how much and ... (NBC News)

The Federal Reserve is expected to announce another quarter-point cut to its key interest rate Wednesday, an effort to boost what appears to some to be a ...

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Image courtesy of "Forbes"

Fed Expected To Announce Another 25 Basis Point Interest Rate ... (Forbes)

Bank of America, Goldman Sachs and JPMorgan Chase economists agree the Fed is likely to signal about 2025 interest rate cuts this Wednesday afternoon.

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Image courtesy of "CNN"

The Fed is about to deliver the last rate cut for a while (CNN)

The Federal Reserve on Wednesday is expected to cut interest rates for the third time this year, in what could be the last rate cut for months.

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Image courtesy of "USA TODAY"

Another Fed rate cut is likely Wednesday. So is a forecast for fewer ... (USA TODAY)

The Federal Reserve is expected to trim its key interest rate for a third straight meeting. But it's likely to forecast a slower pace of cuts in 2025.

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Image courtesy of "Barron's"

Fed Meeting News Today: Interest-Rate Cut Decision; Economic ... (Barron's)

Follow live coverage of the Fed's December FOMC meeting, interest-rate decision, 2025 economic projections, and chair Jerome Powell's speech on Wednesday.

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Image courtesy of "CNNMoney"

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

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 ...

Investors brace for hawkish Fed rate cut - and more volatile markets ... (Morningstar.com)

By Christine Idzelis. 'We're going to study the dot plot, like everybody, and then I'm going to put it in a drawer,' says BlackRock's Rick Rieder.

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Image courtesy of "Livemint"

US Fed Meeting LIVE: Wall Street drifts higher ahead of Powell-led ... (Livemint)

US Fed Meeting LIVE: US Fed chair Jerome Powell-led rate-setting panel is expected to reduce the benchmark policy rate by 25 bps after kicking off its ...

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Image courtesy of "CNBC"

Fed meeting live updates: Fed expected to cut rates, but traders ... (CNBC)

The Fed is widely expected to trim rates at the end of its December meeting. Investors are focused on policymakers' economic projections and the path ...

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Image courtesy of "BBC News"

US cuts interest rates despite inflation risk (BBC News)

The Federal Reserve has been cutting rates since September, even as inflation progress stalls.

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Image courtesy of "The Guardian"

Fed cuts interest rates amid questions over its fight to lower inflation (The Guardian)

Central bank lowers the benchmark federal funds rate by a quarter of a percentage point.

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Image courtesy of "NPR"

The Federal Reserve lowers interest rates again -- but hints at fewer ... (NPR)

The Fed lowered interest rates by a quarter percentage point — but policymakers are projecting fewer rate cuts next year as inflation remains elevated.

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Image courtesy of "The Straits Times"

US Fed cuts rate by quarter-point in third straight reduction (The Straits Times)

Policymakers voted 11-to-1 to lower the US central bank's key lending rate to between 4.25 per cent and 4.50 per cent. Read more at straitstimes.com.

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Image courtesy of "Reuters"

Fed policymakers project two quarter-point rate cuts next year (Reuters)

U.S. central bankers on Wednesday issued fresh projections calling for two quarter-point interest-rate cuts next year amid rising inflation, ...

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Image courtesy of "Reuters"

Stocks tumble after Fed cuts rates, signals slower cut pace (Reuters)

U.S. stocks plunged on Wednesday, erasing earlier gains after the Federal Reserve cut interest rates by a quarter of a percentage point and the central ...

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Image courtesy of "CNBC"

Fed cuts by a quarter point, indicates fewer reductions ahead (CNBC)

The Federal Reserve on Wednesday announced its decision on interest rates.

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Image courtesy of "Investor's Business Daily"

Fed Lowers Rates, Pencils In 2 Cuts In 2025, But S&P 500 Falls (Live) (Investor's Business Daily)

The Federal Reserve cut rates as expected and penciled in two more for 2025. But the S&P 500 turned lower over doubts the Fed will follow through.

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Image courtesy of "Reuters"

Fed lowers rates but sees fewer cuts in 2025 due to stubbornly high ... (Reuters)

The U.S. central bank lowered interest rates on Wednesday, but Federal Reserve Chair Jerome Powell said more reductions in borrowing costs hinge on further ...

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Image courtesy of "CNA"

Wall Street tumbles as Fed projects slower rate cuts next year (CNA)

NEW YORK :Wall Street closed sharply lower on Wednesday, with the Dow falling over 1100 points after the U.S. Federal Reserve delivered a rate cut as ...

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Image courtesy of "ING Think"

Fed confirms a slower and shallower rate cut story for 2025 (ING Think)

We got another 25bp policy rate cut from the Fed, but updated projections and Chair Powell's press conference confirms that the Fed is going to be much more ...

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Image courtesy of "PBS NewsHour"

Stocks fall sharply after Federal Reserve signals fewer rate cuts than ... (PBS NewsHour)

Fed officials released projections on Wednesday showing the median expectation among them is for two more cuts to the federal funds rate in 2025, ...

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Image courtesy of "CBS News"

Federal Reserve cuts interest rates by 0.25 percentage points, but ... (CBS News)

The Fed lowered the federal funds rate — the interest rate banks charge each other for short-term loans — to a range of 4.25% to 4.5%, down from its previous ...

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Image courtesy of "Aljazeera.com"

US Fed cuts interest rates but cautions for year ahead (Aljazeera.com)

Slower progress on inflation translates into a slower pace of rate cuts, especially as economic growth is brisk.

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Image courtesy of "JP Morgan"

December 2024 Fed Meeting: Fed Cuts Rates By 25 Basis Points to ... (JP Morgan)

The Fed's statement introduced a new qualifier on the "extent and timing" of future rate cuts, suggesting a slower pace in 2025 than previously anticipated.

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Image courtesy of "Morningstar"

US Stocks Tumble on New Fed Rate Forecast—Here's Why (Morningstar)

The Fed signaled fewer rate cuts and potentially sticky inflation in 2025.

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Image courtesy of "Reuters"

Fed's hawkish cut fires up rate hike debate (Reuters)

The end of the Federal Reserve's interest rate-cutting cycle is suddenly in sight, and a complete U-turn with rate hikes next year can no longer be ruled ...

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Image courtesy of "CNBC"

Nomura explains why it expects 2 Fed rate cuts in 2025 (CNBC)

Gareth Nicholson, CIO for International Wealth Management at Nomura, says that's because the trajectory will still be "a bit more deflationary" from here, ...

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