Bracing for a Fed Pullback on Interest Rates

Published On Dec 17, 2024, 7:46 AM

The Federal Reserve is poised to lower interest rates for the third time this year amidst ongoing concerns about high inflation and economic volatility. The central bank appears divided on whether to continue rate cuts, which could affect borrowing costs for consumers and businesses. There's speculation about the implications of incoming President Donald Trump's economic policies, particularly regarding potential trade wars and tax changes. The market is bracing for signals from Fed Chair Jay Powell, who hints at caution in determining neutral interest rates. Overall, while consumers express optimism about their finances, uncertainty looms due to inflation data and political developments.