The Federal Reserve cut its key interest rate by a quarter-point, indicating a shift towards more measured rate reductions next year due to persistent inflation.
Despite three rate cuts this year, the Fed projects only two further reductions in 2025, reflecting concerns over sticky inflation and economic growth.
Fed officials stress the importance of approaching a 'neutral' rate, which would neither stimulate nor hinder the economy as inflation remains elevated.
The central bank aims for a 'soft landing' by controlling inflation while fostering economic growth, but faces challenges with ongoing high inflation rates.
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