The Federal Reserve (FED) has announced a 25 basis point cut in interest rates, in line with expectations. Cleveland Fed President Hammack initially opposed the decision, suggesting that the pace of rate cuts should slow down. The FED will assess future actions based on data and expects inflation to reach 2% in 2027. The FED also raised its median forecast for personal consumption expenditures inflation to 2.5% in 2025. The dot plot indicates that the federal funds rate is estimated to be 3.4% at the end of 2026. Cleveland Fed President Hammack and former Boston Federal Reserve President Rosengren expressed concerns over potential inflation risks due to President-elect Donald Trump's policies.



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