The Federal Reserve cut interest rates by a quarter-point for the third time this year but indicated a slower pace of cuts in 2025 due to persistent inflation.
Policymakers now anticipate just two rate cuts next year, down from September’s forecast of four. The benchmark rate stands at 4.3%, nearing a neutral level that neither boosts nor hinders the economy.
Despite easing rates, inflation remains above the Fed’s 2% target, complicating efforts to avoid a recession while curbing inflation.
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