The article discusses the likelihood of the Federal Reserve cutting its benchmark interest rate by 25 basis points in December. Analyst Megan Leonhardt believes there is a nearly 100% probability of this rate cut occurring. However, Leonhardt also warns that Fed Chairman Jerome Powell may accompany the rate cut with guidance indicating a pause in rate cuts early next year. Goldman Sachs expects not only a rate cut in December but also additional cuts in January and March 2025, with the possibility of more cuts later in the year. However, some members of the Federal Open Market Committee (FOMC) are expressing a willingness to slow down the rate-cutting cycle earlier than expected. The risk of a pause in rate cuts at the January meeting is increasing due to stronger-than-expected economic data in November. The article emphasizes the importance of Powell's post-meeting speech and the Fed's updated economic forecasts in providing insights into their strategy for managing inflation and addressing fiscal policy challenges.



Other News from Today