Live Updates: Fed Is Poised for Another Rate Cut

Published On Dec 18, 2024, 12:01 PM

The Federal Reserve is set to announce its third interest rate cut of 2024, but investors are more concerned with future rate projections for 2025. Strong economic growth and sticky inflation may influence the Fed to decrease the number of anticipated rate cuts next year. Fed Chair Jerome Powell's upcoming news conference will be scrutinized for hints on economic policy direction amid uncertainty surrounding new economic policies from the incoming Trump administration. Market reactions are expected as central banks globally are also on high alert due to potential trade tensions and inflation risks. Overall, the economy shows signs of stability while facing uncertainty in regulatory changes.

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Stock Forecasts

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The Fed's rate cut is likely to provide temporary relief to interest-sensitive sectors, but ongoing policy uncertainty could dampen overall market sentiment in the medium term. Market participants may favor defensive sectors or bonds as the economic outlook remains clouded by potential trade wars stemming from new policies.

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