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.