Fed officials see interest rate cuts ahead, but only 'gradually,' meeting minutes show

Published On Nov 26, 2024, 2:03 PM

Federal Reserve officials believe that inflation is easing and the labor market remains robust, enabling a gradual reduction in interest rates. They discussed the potential for further cuts, depending on economic data showing sustainable inflation around the Fed's target of 2%. They unanimously agreed to lower the benchmark rate to 4.5%-4.75%. Markets expect a potential cut in December, though uncertainty around political factors, particularly from incoming President Donald Trump's policies, casts doubt on the timing and extent of future rate cuts.