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  • Dec 18, 2024

Fed's Powell Shocks Markets After Interest Rate Cut: 'It's A New Phase'

In a year marked by three consecutive rate cuts totaling 100 basis points, Federal Reserve Chair Jerome Powell said the Fed is shifting gears to a more cautious stance heading into 2025 as interest rates move tantalizingly close to a neutral environment for the economy. Following the latest 25-basis-point reduction announced Wednesday, the federal funds rate now sits at 4.25%-4.5%, the lowest since January 2023. “We’re significantly closer to neutral,” Powell said during the post-meeting press c

  • Dec 18, 2024

US rate futures price in Fed on hold in January, less than two cuts in 2025

NEW YORK (Reuters) -Futures on the federal funds rate, which measure the cost of unsecured overnight loans between banks, priced in on Wednesday that the Federal Reserve will hold the overnight benchmark rate steady in January, after it lowered rates by 25 basis points at the end of its two-day meeting. Rate futures also factored in about 33 bps in cuts in 2025, down from 49 bps immediately after the Fed statement, LSEG calculations showed. The Fed on Wednesday also released new estimates on rate forecasts, also known as the "dot plot", which called for two quarter-point rate cuts next year.

  • Dec 18, 2024

Fed cuts rates 25 bp, scales back 2025 easing projections

The reduction by the central bank's Federal Open Market Committee in the benchmark policy rate to the 4.25%-4.50% range was opposed by Cleveland Fed President Beth Hammack, who preferred to leave the policy rate unchanged. U.S. central bankers now project they will make just two quarter-percentage-point rate reductions by the end of 2025. Fed Chair Jerome Powell said at a press conference after the release of the FOMC statement that it's too soon to say what President-elect Donald Trump's proposed economic policies will do to the economy or how that might bear on Fed policies.

  • Dec 18, 2024

Gold Falls to One-Month Low After Fed Signals Less Easing

(Bloomberg) -- Gold fell to the lowest price in a month after the Federal Reserve reduced interest rates and forecast less monetary easing for 2025.Most Read from BloombergNYPD Car Chases Are Becoming More Frequent — and More DangerousUS policymakers lowered their benchmark interest rate for a third consecutive time on Wednesday, but reined in the number of cuts they expect in 2025, signaling greater caution over how quickly they can continue reducing borrowing costs.New quarterly forecasts show

  • Dec 18, 2024

Fed's Powell not ready to say what Trump policies will do to economy

Federal Reserve Chairman Jerome Powell said Wednesday it's too soon to say what President-elect Donald Trump's proposed economic policies will do to the economy and how that might bear on the central bank's policy choices. "We need to take our time, not rush” and see what the new president delivers, Powell said, amid economists' expectations that tariffs and deportations favored by Trump are likely to push inflation higher.

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