Fed policy-makers are set to reduce their benchmark rate by a quarter-point to about 4.3% when their meeting ends Wednesday
Americans hoping for lower borrowing costs for homes, credit cards and cars may be disappointed after this week’s Federal Reserve meeting. The Fed’s policy-makers are likely to signal fewer interest rate cuts next year than were previously expected.
“We’re on the cusp of a transition to them not cutting every meeting,” said David Wilcox, a former senior Fed official who is an economist with Bloomberg Economics and the Peterson Institute for International Economics. “They’re going to slow the tempo of cuts.” On Wednesday, the policy-makers will also issue their quarterly projections for growth, inflation, unemployment and their benchmark interest rate over the next three years. In September, they had collectively envisioned that they’d cut rates four times next year. Economists now expect just two or three Fed rate cuts in 2025. Wall Street traders foresee even fewer: Just two cuts, according to futures prices.
Fed officials, including Powell, have said they still foresee inflation heading lower, however slowly, while their key rate is still high enough to restrain growth. As a result, reducing rates this week is more akin to letting up on a brake than stepping on an accelerator. “It seems easier to explain not cutting than to find themselves in a position where they would have to raise rates in this political environment,” Sinclair said.
Canada News Breaking News Video Canadian Breaking News Breaking News Globe And Mail Breaking News Globe And Mail Canada News Photos World News Local News National News Us News Foreign News Sports News Arts News Life News Lifestyle Canada Traffic Canada Weather Trudeau Government Federal Government Canada Sports Canada Sports News Politics Politics News Political News Political Opinion Environment Economy Technology Education Travel Canada Alberta Bc British Columbia Manitoba Ontario Quebec Nova Scotia Pei New Brunswick Newfoundland And Labrador Nunavut Northwest Territories Yukon Globe And Mail
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gold prices fluctuate amid geopolitical tensions and federal reserve insightsThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Read more »
Federal Reserve officials signal cautious path for rate cuts amid still-high inflationWASHINGTON (AP) — With inflation still elevated, Federal Reserve officials expressed caution at their last meeting about cutting interest rates too quickly, adding to uncertainty about their next moves.
Read more »
Economic signals and Federal Reserve expectations provide limited support for goldThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Read more »
Gold price faces strong headwinds ahead of Federal Reserve meetingThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Read more »
Two U.S. Federal Reserve governors stake out competing views of inflation riskOne of the Fed governors cited ongoing concerns about inflation on Wednesday, while the other expressed confidence that price pressures will continue to ease
Read more »
U.S. Federal Reserve announces policy framework review, sets conference for May 15-16A statement from Fed Chair Jerome Powell said the U.S. central bank’s 2% inflation goal ‘will not be a focus of the review’
Read more »