Federal Reserve cuts interest rates by quarter-point in December
Published On Dec 18, 2024, 2:01 PM
The Federal Reserve has announced a quarter-point cut to interest rates, following a similar cut in November. This marks the third consecutive reduction, with the current federal funds rate now ranging from 4.25% to 4.5%. The cuts are part of the Fed's strategy to manage inflation, which, while improving, remains above their target of 2%. The Fed noted that despite recent adjustments, economic outlooks are uncertain and employment conditions have slightly softened, although overall unemployment remains low.
Stock Forecasts
SPY
Positive
The reduction in interest rates typically supports stock market growth as borrowing costs reduce, stimulating spending and investment. This could benefit sectors that rely heavily on borrowing.
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