Federal Reserve Rate Decisions

The Federal Reserve cut interest rates recently but expressed hesitance about continuing rate cuts into the new year, indicating a revision of expected cuts from four to just two for the coming year. Fed Chair Jerome Powell emphasized the need for caution, noting that the current policy rate is now less restrictive than before, and there is no urgency to make further adjustments. The shift in the Fed's economic projections revealed that officials are expecting unemployment to rise slightly while inflation is anticipated to level out around 2.5% by 2026. This cautious stance reflects uncertainty about the economic conditions and the belief that incoming data will guide future decisions rather than predetermined cuts based on projections alone.