The Federal Reserve is widely expected to announce a 25 basis point interest rate cut today, lowering the federal funds rate to a target range of 4.25%–4.50%
This would mark the third consecutive rate reduction in 2024, following cuts in September and November.
Despite this anticipated cut, the Fed is projected to adopt a hawkish stance regarding monetary policy for 2025. Analysts suggest that the central bank may signal a slower pace of rate cuts next year, influenced by factors such as persistent inflation and potential fiscal policies under the incoming administration.
Investors and market participants are keenly awaiting the FOMC Economic Projections and Chair Jerome Powell’s press conference for insights into the Fed’s outlook on economic growth, inflation, and future interest rate trajectories. These communications are expected to provide clarity on the balance between supporting economic growth and managing inflationary pressures in the upcoming year.
In summary, while a rate cut is anticipated today, the Federal Reserve is likely to convey a cautious approach toward monetary easing in 2025, emphasizing vigilance against inflation and considering the potential impacts of new fiscal policies.$XRP $BTC $DOGE