{"id":138488,"date":"2024-12-18T18:31:52","date_gmt":"2024-12-18T11:31:52","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=138488"},"modified":"2024-12-18T18:31:52","modified_gmt":"2024-12-18T11:31:52","slug":"the-fed-is-about-to-deliver-the-last-rate-cut-for-a-while","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=138488","title":{"rendered":"The Fed is about to deliver the last rate cut for a while"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div data-editable=\"content\" itemprop=\"articleBody\" data-reorderable=\"content\">\n<p>\n    <cite class=\"source__cite\"><br \/>\n      <span class=\"source__location\" data-editable=\"location\">Washington<\/span><br \/>\n      <span class=\"source__text\" data-editable=\"source\">CNN<\/span><br \/>\n        \u00a0\u2014\u00a0<br \/>\n    <\/cite>\n<\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4si6ofq00642cnx45ls69rg@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The Federal Reserve on Wednesday is expected to cut interest rates for the third time this year, in what could be the last rate cut for months.\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4soeis200023b6m5zecgm7s@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The US economy remains resilient, with the job market <a href=\"https:\/\/www.cnn.com\/business\/live-news\/us-jobs-report-november-2024\/index.html\">holding steady<\/a> and economic growth <a href=\"https:\/\/www.cnn.com\/2024\/10\/30\/economy\/us-economy-gdp-q3\/index.html\">forging ahead<\/a>. But inflation\u2019s progress to the Fed\u2019s 2% target may have stalled in recent months. Put together, economic figures show the Fed doesn\u2019t need to be in any rush to lower borrowing costs after this week \u2014 a stance <a href=\"https:\/\/www.cnn.com\/2024\/12\/04\/economy\/fed-chair-powell-trump-dealbook\/index.html\">communicated by the Fed\u2019s leader recently.<\/a>\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4soekhl00043b6m31c7uyms@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cWe can afford to be a little more cautious,\u201d Fed Chair Jerome Powell said in New York earlier this month. \u201cI feel very good about where the economy is and where monetary policy is.\u201d\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4ssd95b00023b6mgfh57kp9@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Powell will address reporters in a news conference at 2 p.m. ET. Investors will be listening closely for hints that the Fed is leaning toward holding rates steady in the coming months.\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4soem3400063b6mvn5vddao@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Fed officials will also release a fresh set of economic forecasts, likely reflecting fewer rate cuts in 2025 than previously anticipated. In September, officials penciled in four rate cuts for next year.\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4soenqm00083b6m8mvg27qp@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The Fed began to cut rates in September, starting with a bold half-point cut. Powell said the move reflected the Fed\u2019s commitment to preserving the labor market\u2019s health, appeasing some investors who feared unemployment could soon take off.\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4sp2bai00163b6mics0ue4i@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            That turned out to not be the case; both the economy and job market remain on solid footing, which Powell noted in his New York speech. Still, Wall Street is fully expecting the Fed to follow through with another quarter-point rate cut this week.\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4sovfsu00113b6m2vlll4ze@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cFed officials are in a really awkward spot with this rate cut,\u201d Karl Schamotta, chief market strategist at Corpay, told CNN.\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4soer33000a3b6mey6szimz@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The Fed\u2019s key interest rate influences borrowing costs across the economy and it\u2019s used to achieve stable prices and maximum employment, two key goals mandated by Congress. The central bank raises interest rates whenever it needs to cool the economy to get inflation under control.\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4sofet4000e3b6m0duh30oa@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            With inflation nearly back to the Fed\u2019s target, plus a cooling job market, officials have been trying to recalibrate policy to make sure that high borrowing costs don\u2019t inflict undue damage to the economy. The two rate cuts so far were just the beginning of that process.\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4sofgl7000g3b6msfjv3ft6@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cI believe the evidence is strong that policy continues to be significantly restrictive and that cutting again will only mean that we aren\u2019t pressing on the brake pedal quite as hard,\u201d Fed Governor Christopher Waller said at event in Washington, DC, early this month. \u201cAnother factor that supports a further rate cut is that the labor market appears to finally be in balance, and we should aim to keep it that way.\u201d\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4sogov4000i3b6m3ycjggmp@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The US labor market remains in good shape, with unemployment still at historically low levels and employers continuing to add jobs, though it has become harder for job seekers to find work. The number of people who\u2019ve been unemployed for more than 26 weeks rose in November to the highest level in nearly three years.\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4soiilf000k3b6m8nczy2b5@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cThe labor market has weakened somewhat and inflation is expected to be very benign during the first two quarters of next year, which is why they are cutting again,\u201d Eugenio Aleman, chief economist at Raymond James, told CNN. \u201cBut after that, the picture is not as rosy.\u201d\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4soikpx000m3b6mshg4mtfg@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The elephant in the room is President-elect Donald Trump\u2019s second term, which starts on January 20, and how his proposed policies could affect the US economy. The potentially <a href=\"https:\/\/www.cnn.com\/2024\/12\/17\/economy\/trumps-tariffs-stagflation\/index.html\">massive tariffs<\/a> he\u2019s floated for goods coming from Mexico, Canada and China are widely expected to eventually push up inflation, which could keep the Fed from cutting rates \u2014 or even lead to a hike instead.\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4soe72400003b6m9b41cykl@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            But there are still many knowns, such as which specific goods will be tariffed and the duration of any new duties. Fed officials will eventually factor in to their economic models any expected changes in trade policies once they are fully fleshed out and set it motion.\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4soinr5000o3b6mvo9zjrvv@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Inflation data has showed limited progress in recent months.\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4sooozf000v3b6m758wrqwn@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The closely watched Consumer Price Index <a href=\"https:\/\/www.cnn.com\/2024\/12\/11\/economy\/us-consumer-price-index-inflation-november\/index.html\">rose 2.7% in the year ending in November<\/a>, accelerating from October\u2019s 2.6% annual increase and marking the highest annual rate since July. The annual figure was in line with economists\u2019 expectations.\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4sowd8000143b6mee52rqhq@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Meanwhile, the Producer Price Index, which captures prices at the factory gate, <a href=\"https:\/\/www.cnn.com\/2024\/12\/12\/economy\/us-producer-price-index-ppi-inflation\/index.html\">jumped 0.4% on a monthly basis<\/a> and 3% for the 12 months ended in November, reflecting a sharp pick-up from October.\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4spa2e700193b6me0mo0ec0@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The Fed\u2019s preferred inflation measure \u2014 the Personal Consumption Expenditures price index \u2014 is due Friday and could similarly show stubborn price pressures.\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4spczaa001c3b6mpy0umeaz@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The latest inflation figures likely won\u2019t deter the Fed from delivering this year\u2019s third rate cut, but they are likely to underscore the bumpiness of inflation\u2019s path toward 2%. More of the same could force officials to acknowledge that further progress on inflation has stalled, which they did early this year, keeping interest rates steady until the tide turns.\n    <\/p>\n<p class=\"paragraph inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cm4ss6h9u00003b6m0kyh2do1@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The quarterly \u201cdot plot,\u201d which shows Fed officials\u2019 projections on rate moves, could give the best signal on what to expect from the central bank in 2025.\n    <\/p>\n<\/p><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.cnn.com\/2024\/12\/18\/economy\/fed-rate-decision-december\/index.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Washington CNN \u00a0\u2014\u00a0 The Federal Reserve on Wednesday is expected to cut interest rates for the third time this year, in what could be the last rate cut for months. &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=138488\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-138488","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/138488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=138488"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/138488\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=138488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=138488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=138488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}