CBS News - Fed expected to make another cut in final interest rate decision of 2024
The Federal Reserve is anticipated to announce a quarter-point interest rate cut, following previous cuts in September and November. This decision comes despite rising inflation, which some economists argue makes it an inopportune time for further rate reductions. The market has already priced in a 90% chance of this cut. Additionally, the Fed will release its economic outlook for 2025, including projections for inflation, the labor market, and future rate-cutting strategies. Key points to watch during Chairman Powell's news conference include mentions of slowing inflation and the ongoing fight against it. The decision to cut rates is significant as it affects credit card and mortgage interest rates, balancing economic fundamentals with market sentiment.
Key Points:
- The Federal Reserve is expected to cut interest rates by a quarter point, following previous cuts in September and November.
- Rising inflation raises concerns about the timing of the rate cut, with some economists questioning its appropriateness.
- Markets have priced in a 90% likelihood of the rate cut, indicating strong expectations.
- The Fed will provide its economic outlook for 2025, including inflation and labor market projections.
- Chairman Powell's statements on inflation and rate strategies will be crucial for market reactions.