US Fed officials expected slower rate cuts in 2025, say December minutes
US Fed officials expected slower rate cuts in 2025, say December minutes
Minutes of the December meeting show a division on decision to cut rates and the 0.25 percent cut was ‘close call’.
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Published on: 08/01/2025 | 00:00:00
AI Summary:
United States Federal Reserve officials at their meeting December 17-18 expected to dial back the pace of interest rate cuts this year. Some expressed support for keeping the central bank’s key rate unchanged, the minutes said. One official, Cleveland Fed President Beth Hammack, dissented in favour of keeping rates unchanged. Fed officials said they expect just two cuts next year, down from an earlier projection of four. Fed staff economists considered the economy’s future path particularly uncertain at the December meeting. The staff said inflation this year would be about the same as in 2024. Stock markets plummeted after the Fed officials reduced their outlook for rate cuts last month. Trump's tariff proposals could push inflation up by nearly a half-percentage point later this year. Fed governor Christopher Waller said that he still supported rate reductions this year, partly because he expects inflation to steadily head down to the Fed target. Waller also said he didn’t think Trump would ultimately impose the universal tariffs he promised in the campaign.
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