Fed expected to cut interest rates despite rising inflation. Here's why
The reason is clear, experts told ABC News: Interest rates will remain historically high even after a small cut. The Fed likely does not view a mild uptick of inflation this fall as enough to deviate from a path of rate cuts it laid out earlier this year, they added.
Will the Fed Cut Interest Rates Next Week? Here's What Wall Street Thinks.
The Fed hiked the federal funds rate (overnight interest rates) to a two-decade high of 5.33% between Mar. 2022 and Aug. 2023, in order to tame an inflation surge that resulted from pandemic-related stimulus measures and disruptions to the economy.
US data has Fed striding toward rate cut next week, and tip-toeing into 2025
Investors view it as a near given that the U.S. Federal Reserve will cut interest rates by a quarter of a percentage point at its Dec. 17-18 meeting, with more attention focused on policymakers' new economic projections released alongside the decision.
Donald Trump's plans will test Fed interest rate cut bets in 2025
The stock market appears to agree: After his comeback win, the S&P 500 topped the 6,000-point mark for the first time and the benchmark has risen around 6.3% since Election Day, adding more than $1.5 trillion to the collective value of the country's biggest companies.
Fed's expected landing point on interest rates is now a lot higher
A return to extremely low borrowing rates has been looking more and more unlikely in recent months. That's because expectations for the Federal Reserve's eventual landing point for its short-term policy rate have been going higher,
Fed Leans Toward A December Interest Rate Cut
The Federal Open Market Committee is most likely to cut interest rates again on December 18 to 4.25% to 4.5%, according to fixed income markets.
Inflation increased in November, complicating Fed's next rate decision
The inflation gauge makes up the last piece of significant economic data before the Fed announces its next interest rate decision on Dec. 18. A finding of accelerated price hikes may give the Fed pause as it weighs interest rate cuts.
Interest Rate Forecast: How Much More Will the Fed Cut?
According to CME FedWatch, a popular interest-rate probability tracker, there’s an 88% chance of a 25-point rate cut. A similar tool from the Federal Reserve Bank of Atlanta predicts a rate cut of that size is 80% likely. The tools predict a 14% and 18% likelihood, respectively, that rates will remain unchanged.
Week Ahead for FX, Bonds: Fed Expected to Cut Interest Rates in Busy Week for Central Bank Decisions
A decision by the U.S. Federal Reserve will be the highlight of a busy week for central-bank decisions. Other interest-rate decisions are due from Japan, the U.K., Norway and Sweden.
Fed to cut rates next week, bringing an end to first phase of easing
The Federal Reserve is set to cut its benchmark interest rate by a quarter-percentage point next week, staying on the path it has laid out to slowly bring rates down even as the economic landscape shifts beneath its feet.
US equity funds gain sixth weekly inflow on Fed rate cut expectations
U.S. investors snapped up equity funds for a sixth consecutive week through Dec. 11, spurred by the potential for a Federal Reserve interest rate cut at the upcoming meeting, amid signs of a moderating labor market and cooling inflation.
What’s the Fed’s ‘Neutral’ Interest Rate? Why Does It Matter?
Central banks seek to manage economies by setting interest rates at levels that encourage or discourage activities such as ...
US Fed to play ‘cut-and-pause’ for meeting dual mandate of growth & inflation; Fewer rate cuts eyed in 2025: Experts
This will be the last US Fed rate decision before President Joe Biden, a Democrat, hands over the White House to incoming ...
Chances of Fed rate cut rise despite higher November inflation report
The market sees the probability of another 25 basis point interest rate cut at next week's Federal Reserve meeting as rising ...
Fed officials advocate for ‘caution’ and slower rate cuts next year as Trump prepares to take office
Experts say Trump’s potential policies, including his tariff proposals, could do much to impact the economy and the Fed’s ...
Worries of a Fed policy mistake are growing amid a hot economy and sticky inflation
The fear among some commentators is that the Fed is cutting rates in a hot economy with inflation above target, raising the ...
With Fed rate cut looming, bitcoin holds above six-figure mark
The Federal Reserve is widely expected to cut interest rates next week, helping bitcoin prices stay above $100,000. Lowered ...
Fed rate view in focus as robust stocks year draws to close
A banner year for U.S. stocks gets one of its last big tests with the coming week’s Federal Reserve meeting, as investors ...
The Fed slashed interest rates, but some credit card APRs aren’t going down. Here’s why.
But when the Fed started slashing interest rates in September, with an initial cut of half a percentage point, the average ...