Experts predict 'shock' ahead of the important meeting: The Fed will cut rates for the last time on December 18, but could quickly "reverse course" to raise rates as soon as 2025.
The Fed's final meeting of 2024 will take place on December 18. While the market forecasts a nearly certain 25 basis point cut, the outlook for January remains unclear.
According to Yardeni Research, Mr. Jerome Powell may announce at the press conference following the meeting that the next interest rate adjustment decision will be a pause.
Yardeni Research stated: “After cutting rates by 100 basis points since September 18, we expect Chairman Powell to signal that the Fed will pause easing policy in the near future, after the final meeting of the year.”
The recovery and positive growth of the U.S. economy is the main reason the Fed can assert that the next step regarding interest rate adjustments on December 18 will be the final cut after a period of time.
