US Fed Meeting: Jerome Powell Flags Inflation Risk In 2025 As FOMC Sees Fewer Interest Rate Cuts
The Federal Open Market Committee voted 11-1 to lower interest rate by 25 basis points to target range of 4.25-4.5%. Jerome Powell said the guard on inflation is up even as US economy looks resilient.
KEY HIGHLIGHTS
US Fed Meeting Live: Check Key Highlights
The US Federal Reserve on Wednesday reduced its key interest rate for the third time since the pandemic, in line with expectations. The Federal Open Market Committee lowered the rate for the first time in September and then in November.
The central bank had kept its key interest rate unchanged for eight consecutive meetings until July, after raising it by 25 basis points last year, bringing the benchmark rate to a 22-year high.
Read full story here.
US Fed Rate Cut Reaction: Gold Extends Losses
Gold extended declines after the Federal Reserve lowered interest rates and forecast less monetary easing for 2025. Spot gold was 1.6% lower at $2,605 an ounce in New York. Silver, palladium and platinum were all lower.
Read full story here.
Jerome Powell Live: Fed Gave Big Rate Cut This Year, Chair Says
"The one percentage point in cuts this year show that the US Fed has done a lot to support the economy," Powell said, adding policymakers now want to see progress on inflation before reducing rates further.
US Fed Rate Cut: Dollar Surges Ahead
The US dollar continued to rally after Federal Resreve cut its benchmark interest rate, but projected less cuts next year.
The dollar index is up 0.9% at 108, highest since 2022.
Read story here.
US Stock Market Check: Dow Jones, Nasdaq Shed 1%
Here’s how US markets are reacting as Jerome Powell is talking about the Federal Reserve interest rate cut:
Dow Jones down 1.13% at 42,960.
S&P 500 down 0.8% to 6,000.
Nasdaq Composite down 1.6% to 19,788.
