Federal Reserve projects slow inflation stability, signals data-dependent approach to rate cuts

From Investing.com: 2024-12-19 05:15:00

The Fed cut the Funds rate by 25bps to 4.25-4.50% at the FOMC meeting, signaling a more data-dependent approach to further rate cuts. They now project a total rate cut of 0.50% for 2025, down from the previous estimate of 1%. Inflation is expected to remain around 2% through 2025. Market expected two 25bps rate cuts in 2025 before the meeting. Bond yields have been rising, reflecting sentiment and concerns about inflation’s “stickiness.” Higher yields could lead to lower stock performance as valuations adjust to slower growth. Retail sales of food and drink establishments are growing at a slow rate, indicating low consumer confidence and potential economic slowdown.



Read more at Investing.com: Fed’s New Economic Projections Indicate a Long Road to Inflation Stability