Wall Street falls sharply as Fed indicates fewer rate cuts in 2025 to fight inflation

Central bank lowers benchmark federal funds rate by a quarter of a percentage point to between 4.25% to 4.5%

The US Federal Reserve cut interest rates on Wednesday, but suggested it would make fewer rate cuts than expected in 2025 amid questions over its fight to bring down inflation across the world’s largest economy.

Jerome Powell, the Fed chair, said inflation had been “stubborn”, but insisted the central bank believed its rate hikes would continue to erode the pace of price rises.

Topics

Stocks Plunge as Fed Forecasts Fewer Rate Cuts Next Year

The Federal Reserve cut rates for a third time this year, but investors shuddered at revised forecasts suggesting only two cuts in 2025.
The New York Times - 1h
The Fed Cut Rates and Signaled a Long Fight Against Inflation

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The New York Times - 1h
Stock market plummets after Fed forecasts fewer rate cuts in 2025

The stock market is down sharply today after the Federal Reserve forecast fewer interest rate cuts in 2025 than expected.
CBS News - 2h
Fed Cuts Interest Rates, but Projects Fewer Reductions in 2025

Federal Reserve officials projected just two rate cuts in 2025, and they made it clear that future reductions would hinge on inflation progress.
The New York Times - 2h
Fed cuts by a quarter point, indicates fewer reductions ahead

The Federal Reserve on Wednesday announced its decision on interest rates.
CNBC - 3h
Long-dated Treasury yields end at nearly 7-month highs after Fed projects fewer rate cuts in 2025

Yields on 10- and 30-year U.S. government debt finished at their highest levels since May on Wednesday, after the Federal Reserve pulled back on the number of interest-rate cuts it foresees for ...
MarketWatch - 4h
The Fed sees only two rate cuts in 2025, fewer than previously projected

The so-called dot-plot, which indicates individual members' expectations for rates, showed officials see interest rates falling to 3.9% by the end of 2025.
CNBC - 5h
Fed lowers rates by 0.25 percentage point, but expects fewer cuts

The Federal Reserve on Wednesday moved to lower its benchmark rate by 0.25 percentage points, but said it plans fewer cuts in 2025.
CBS News - 3h
Dow loses 1100 points after Fed projects fewer rate cuts

The stock market closed with steep losses Wednesday after the Federal Reserve cut interest rates but projected higher borrowing costs and steeper inflation for 2025. The Dow Jones Industrial ...
The Hill - 3h