Fed Poised for Rate Cut Amid Inflation Concerns and Cautious Outlook
TL;DR Summary
The Federal Reserve is expected to cut interest rates by 25 basis points in its final 2024 meeting on December 18, following previous cuts in September and November. This move comes as inflation, measured by the Consumer Price Index, has decreased to 2.7%, close to the Fed's 2% target, and unemployment has risen to 4.2%, indicating a softening job market. Wall Street banks like Morgan Stanley and Goldman Sachs, along with the CME Group's FedWatch tool, predict a high probability of this rate cut to avoid a potential recession.
- Will the Fed Cut Interest Rates Next Week? Here's What Wall Street Thinks. Yahoo Finance
- Fed to cut rates next week but signal some cautiousness about slashing more next year, says Morgan Stanley CNBC
- Week Ahead for FX, Bonds: Fed Expected to Cut Interest Rates in Busy Week for Central Bank Decisions The Wall Street Journal
- Worries of a Fed policy mistake are growing amid a hot economy and sticky inflation Business Insider
- Inflation gives Fed green light for December, yellow for 2025 Fortune
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