The Federal Reserve on Wednesday cut its key interest rate for the third time this year, according to the Wisconsin State Journal. Accompanying the quarter-point cut, however, was a warning from policymakers that the Fed intends to reduce rates more slowly in 2025 than previously anticipated due to still-elevated inflation.
The Fed signaled just two quarter-point rate cuts next year, down from its September estimate of four. The new projections mean mortgage rates, auto loans, credit cards, and other borrowing rates may not see the decrease consumers expected.
The Fed’s benchmark rate currently stands at 4.3%, following Wednesday’s quarter-point cut, another in November, and a half-point reduction in September.
