The World Is Settling Down 🔥🚀
After a Notorious Pandemic in 2019, it's aftershocks are still coming and will be remaining till 2029, But things are getting better and better nowadays 🔥🚀
On December 18, 2024, the Federal Reserve reduced the federal funds rate by 25 basis points, setting it within a target range of 4.25% to 4.50%. 🔥
This marks the third consecutive rate cut this year, following similar reductions in September and November. 🔥
Despite this reduction, the Fed signaled a more gradual approach to rate cuts in 2025, projecting only two quarter-point decreases next year, a revision from earlier forecasts of up to five cuts. 🔥
This adjustment reflects concerns over persistent inflation, which remains above the Fed's 2% target, and a robust labor market. 🔥
The financial markets reacted sharply to the Fed's announcement. The Dow Jones Industrial Average dropped over 1,100 points, marking its tenth consecutive decline. 🔥
Additionally, long-term Treasury yields reached their highest levels in nearly seven months, indicating investor anticipation of prolonged higher interest rates. 🔥
Fed Chair Jerome Powell emphasized the need for continued vigilance in combating inflation, stating that while there has been significant progress in reducing inflation over the past two years, it still exceeds the 2% target. 🔥
The Fed's updated projections suggest that the federal funds rate will remain near 4% until 2026, indicating a cautious approach to monetary policy in the coming years. 😎
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