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Today’s quarter-point cut to key federal rates was widely anticipated, but the path of any future cuts remains very uncertain. The US labor market is well-positioned heading into 2025, which could prompt the Federal Reserve to slow down or pause its rate-cutting plans. The Fed projects continued low unemployment, steady economic growth, and persistent inflation in the year ahead — all of which may make future cuts unnecessary or even counter-productive. Inflation, in particular, remains a key challenge. Inflation is now expected to stay steady or even accelerate slightly next year, a shift from September forecasts that predicted continued declines.