#FedCutsRatesBy25Bp The Federal Reserve (Fed) has just cut interest rates by 25 basis points (bp), lowering the federal funds rate to 3.75-4.00%. This move is widely anticipated and marks the second consecutive reduction following September's 25bp cut.
Key Takeaways - *Rate Cut*: The Fed cut rates by 25bp, citing labor market weakness - *Future Cuts*: The Fed signals two more cuts this year despite inflation risks - *Economic Outlook*: The economy is expanding at a "moderate pace," with job gains slowing and inflation remaining somewhat elevated
Analyst Predictions - *J.P. Morgan*: Expects two more cuts in 2025, followed by one in 2026 - *ING Group*: Predicts a December rate cut, with further cuts dependent on future data¹ ² ³
The Fed's decision reflects a cautious easing cycle, balancing concerns about inflation and labor market weakness.
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#FedCutsRatesBy25Bp The Federal Reserve (Fed) has just cut interest rates by 25 basis points (bp), lowering the federal funds rate to 3.75-4.00%. This move is widely anticipated and marks the second consecutive reduction following September's 25bp cut.
Key Takeaways
- *Rate Cut*: The Fed cut rates by 25bp, citing labor market weakness
- *Future Cuts*: The Fed signals two more cuts this year despite inflation risks
- *Economic Outlook*: The economy is expanding at a "moderate pace," with job gains slowing and inflation remaining somewhat elevated
Analyst Predictions
- *J.P. Morgan*: Expects two more cuts in 2025, followed by one in 2026
- *ING Group*: Predicts a December rate cut, with further cuts dependent on future data¹ ² ³
The Fed's decision reflects a cautious easing cycle, balancing concerns about inflation and labor market weakness.