December Interest Rate Cut Almost Certain Despite Lowering Inflation Figures

  • The U.S. Federal Reserve could face a critical moment in the next FOMC meeting.

  • Lowering inflation could influence the Fed’s interest rate decision in December.

  • Officials are skeptical about taking a drastic step so soon.

The Federal Reserve’s upcoming FOMC meeting could shape the U.S. economic path for 2025. October saw a slight rebound in consumer prices after three years of minimal growth. While inflation shows signs of easing, analysts argue this may not deter the Fed from pursuing additional rate cuts in December.

Incoming data reflect gradual improvement in the U.S. economy, but the fluctuations in inflation are creating uncertainty. Many analysts think this uncertainty could lead to heated discussions during the December meeting.

Debates on Interest Rate Cuts Could Shape 2025 Policy

The discussions among FOMC members are expected to provide insights into how the Fed might adjust its policies next year. While some members are open to slowing the pace of rate cuts, others remain cautious about making changes that might require an emergency reversal later.

Read also: Interest Rate Cut vs. Inflation: The Fed’s Dilemma and Crypto’s Future

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