Fed trims main interest rate, signals prospect of less easing in 2025
The Federal Reserve trimmed the main interest rate by a quarter percentage point Wednesday in its third straight reduction since September, while indicating that it may slow the pace of easing in 2025 compared with its prior projection.
Policymakers cut the federal funds rate to a range between 4.25% and 4.5% after weighing signs of a cooling labor market against data showing robust retail sales, strong economic growth and persistent inflation. In a median forecast, Fed officials estimated that they would reduce the main rate to 3.9% by the end of next year, a half percentage point higher than their September forecast.
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