New quarterly forecasts showed several officials penciled in fewer rate cuts for next year than they estimated just a few months ago. They now see their benchmark rate reaching a range of 3.75% to 4% by the end of 2025, implying two quarter-percentage-point cuts, according to the median estimate.
US Federal Reserve (US Fed) officials lowered their benchmark interest rate for a third consecutive time, but reined in the number of cuts they expect in 2025, signaling greater caution over how quickly they can continue reducing borrowing costs.
The Federal Open Market Committee (FOMC) voted 11-1 on Wednesday to cut the federal funds rate to a range of 4.25% to 4.5%. Cleveland US Fed president Beth Hammack voted against the action, preferring to hold rates steady.
