U.S. Federal Reserve Cuts Rates Amid Rising Uncertainty
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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.
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Timeline
- 1. September 2024: Fed resumed cutting interest rates.
- 2. Early December 2024: ADP reported a 32,000 private payroll decline for November.
- 3. Dec. 10–11, 2024: FOMC cut the federal funds rate by 25 basis points to 3.50–3.75%.
- 4. Dec. 10–11, 2024: Fed statement cited slowed job gains, higher unemployment risks, moderate expansion, and elevated inflation.
- 5. Post-decision: Fed signaled continued monitoring of employment and inflation for future policy steps.
Sources
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
