Fed Cuts Rates Again, Easing to Slow in 2025
Federal Reserve Board Chairman Jerome Powell announced 2024’s third and final quarter-point interest rate reduction, ending the year with a target lending rate of 4.25% to 4.5%. Powell indicated cuts would come at a slower pace next year.
Experts told U.S. News & World Report’s Tim Smart the Fed’s moves show inflation remains higher than earlier projections but a “solid” economy — so described in the agency’s announcement, which also acknowledged a softening labor market — is outperforming those same projections.
“It’s a reality that markets had already priced in but one the Fed needed to adjust to bring itself in line,” Shaw wrote.
