The Federal Reserve will announce a rate decision today, Wednesday, Dec. 18. Economists are now expecting fewer cuts in 2025.

The Federal Reserve is starting to contend with how President-elect Donald Trump and his ambitious policies could influence inflation in 2025.

Inflation just hit a five-month high in November and asset prices are smashing records. The Federal Reserve has been communicating its ambition to stamp out inflation for over two years and yet it’s about to cut interest rates as prices continue to move in the wrong direction.

The Federal Reserve cut its key interest rate Wednesday by a quarter-point — its third cut this year — but also signaled that it expects to reduce rates more slowly next year than it previously envisioned, mostly because of still-elevated inflation.

More importantly, inflation is also proving stubborn. Some argue that the Fed should be willing to tolerate (even if only implicitly, rather than explicitly) inflation being a bit higher for a bit longer than it theoretically should. Mohamed A. El-Erian over on Bloomberg Opinion explains this “3% inflation target” view here.

The Federal Reserve's policymakers announced that they will cut the benchmark federal funds rate by a quarter point in December, marking the central bank's third straight cut.

The Federal Reserve on Wednesday moved to lower its benchmark rate by 0.25 percentage points, but said it plans fewer cuts in 2025.

Analysis of the Federal Reserve's recent rate cuts and cautious approach towards future economic policies in response to President-elect Trump's impact.

The projections are a snapshot of individual committee members' best guesses on the future of unemployment, inflation and rate cuts. Economists expect that the average prediction will be three rate cuts in 2025, fewer than were expected when they last published their expectations in September.

An inflation measure closely monitored by the Federal Reserve saw a minimal increase last month, indicating a cooling of price pressures following two months of significant gains. The Commerce Department's report on Friday revealed that prices only rose by ...

Middle-income Americans, many of whom continue to struggle with elevated prices following the pandemic recovery, could face more inflation and a tight job market in 2025 - increasing pressure on a group that is already financially spread thin.