USA, the Fed cuts rates by a quarter of a point. Only two more in 2025

Fed Beige Book economic activity almost unchanged inflation continues to

(Finance) – The Federal Reserve it cut interest rates by a quarter of a point, bringing them to a range between 4.25 and 4.50%. For the US central bank, this is the third consecutive reduction in the cost of money. Last September it reduced the cost of borrowing by half a point and in November by 0.25%.

The institution led by Jerome Powell envisages two more rate cuts, in 2025, for a total of half a point, according to what emerges from the dot-plots, the tables attached to the monetary policy decision. These estimates are halved compared to what was indicated in September when he predicted four cuts.

Furthermore, the Fed has revised growth estimates upwards for the United States in 2025 at +2.1% from the previous +2%, while it does not foresee a return of inflation to 2% before the end of 2026.

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