The Federal Reserve reduced today, Dec. 18, the interest rate range by 25 basis points (bps), marking the third consecutive time, following rate cuts during the September meeting (50 bps) and the November meeting (25 bps).
In a statement, the US central bank said Federal Open Market Committee (FOMC) approved a reduction in the federal funds rate range to between 4.25% and 4.50%. This aligns with market expectations, which had anticipated a 25 basis-point cut.
With this move, policymakers have reduced the target rate range by a total of 100 basis points since the September meeting, which marked the end of the monetary tightening cycle that had been ongoing since March 2022 and also saw the first rate cut in over four years.
Following a two-day meeting, investors are now turning their attention to the upcoming press conference by Fed Chair Jerome Powell, seeking indications about the future of monetary policy amid speculation that the pace of rate cuts might slow to avoid a resurgence in inflation.
The Federal Reserve reduced today, Dec. 18, the interest rate range by 25 basis points (bps), marking the third consecutive time, following rate cuts during the September meeting (50 bps) and the November meeting (25 bps).
In a statement, the US central bank said Federal Open Market Committee (FOMC) approved a reduction in the federal funds rate range to between 4.25% and 4.50%. This aligns with market expectations, which had anticipated a 25 basis-point cut.
With this move, policymakers have reduced the target rate range by a total of 100 basis points since the September meeting, which marked the end of the monetary tightening cycle that had been ongoing since March 2022 and also saw the first rate cut in over four years.
Following a two-day meeting, investors are now turning their attention to the upcoming press conference by Fed Chair Jerome Powell, seeking indications about the future of monetary policy amid speculation that the pace of rate cuts might slow to avoid a resurgence in inflation.
