ECONOMY

U.S. Federal Reserve Cuts Rates Amid Rising Uncertainty

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Media Bias Meter

Sources: 5

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Sources: 5

60-Second Summary

Washington — The Federal Reserve cut the federal funds rate by 25 basis points on Wednesday, lowering the target range to 3.5 to 3.75 percent. Jerome Powell-led Federal Open Market Committee said uncertainty about the economic outlook remains elevated, job gains have slowed, and downside risks to employment have risen. The committee cited moderate economic expansion and elevated inflation one percentage point above target. This marked the third cut since September. Recent ADP data showed US private payrolls fell by 32,000 in November. Policymakers said they will monitor risks to employment and inflation. Based on 6 articles reviewed and supporting research.

About this summary

This 60-second summary was prepared by the JQJO editorial team after reviewing 5 original reports from The Star, english.news.cn, global.chinadaily.com.cn, Asian News International (ANI) and LatestLY.

Timeline of Events

September 2024: Fed resumed cutting interest rates.
Early December 2024: ADP reported a 32,000 private payroll decline for November.
Dec. 10–11, 2024: FOMC cut the federal funds rate by 25 basis points to 3.50–3.75%.
Dec. 10–11, 2024: Fed statement cited slowed job gains, higher unemployment risks, moderate expansion, and elevated inflation.
Post-decision: Fed signaled continued monitoring of employment and inflation for future policy steps.

Media Bias

Articles Published:: 5
Right Leaning:: 0
Left Leaning:: 0
Neutral:: 5

Who Benefited

Borrowers, mortgage applicants and some corporations benefited from a 25-basis-point cut through lower short-term borrowing costs and potentially eased credit conditions following the Fed decision.

Who Suffered

Savers, short-term fixed-income investors and money-market deposit holders suffered reduced returns as the Federal Reserve lowered the policy rate by 25 basis points.

Expert Opinion