


Federal Reserve Cuts Interest Rates: Cautious Outlook Damps Market Optimism
The Federal Reserve's quarter-point interest rate cut and reduced projections for future cuts lead to significant market declines and investor unease.

Fed cuts rates, markets plunge

Boston Herald

How major US stock indexes fared Wednesday, 12/18/2024

Associated Press

Fed forges ahead with third interest rate cut despite growing inflation

Straight Arrow News

Fed Cuts Key Interest Rate By A Quarter Point

Breitbart News
Overview
On December 18, the Federal Reserve cut its interest rate by 25 basis points to 4.25%-4.50%, but projected only two additional cuts for 2025, disappointing investors. This cautious outlook, attributed to persisting inflation risks and uncertainties surrounding President-elect Trump's policies, triggered a sharp decline in U.S. stock markets, with the Dow dropping over 1,123 points. Investors expressed confusion over Fed Chair Jerome Powell’s mixed messaging and the perceived disconnect between market expectations and current economic realities. Analysts noted the Fed's decision was met with skepticism, highlighting the necessity for a more tempered approach amid turbulent economic conditions.
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