
Fed lowers rates but sees fewer cuts ahead
China DailyUS Federal Reserve Chair Jerome Powell departs after speaking at a press conference where he announced the Fed had cut interest rates by a quarter point following a two-day meeting of the Federal Open Market Committee on interest rate policy in Washington, US, December 18, 2024. WASHINGTON — The US Federal Reserve on Wednesday slashed interest rates by 25 basis points, the third consecutive rate cut in this easing cycle, while signaling a slower-than-expected pace of easing next year. 'Hawkish' message Overseas economists and business insiders said the Fed had delivered a "hawkish" message, which underscores policymakers' concern about lingering inflation as well as sweeping economic changes under the incoming Donald Trump administration. Officials' forecast for two quarter-point rate cuts next year, rather than the three expected by some economists, represented a "wholesale shift", he said.
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