US Fed Meeting LIVE: The US Federal Reserve announced its eighth policy decision for 2024 after a two-day Federal Open Market Committee (FOMC) meeting and voted 11 to 1 on Wednesday, December 18, to slash the benchmark interest rate by 25 basis points (bps) or (1/4) quarter of a percentage point to 4.25 – 4.50 per cent, broadly in line with Wall Street estimates.
This is the US Central Bank’s third straight policy reduction in 2024 and the second straight 25 bps rate cut. US Fed chair Jerome Powell-led rate-setting panel now envisions only two rate cuts in 2025 after latest US inflation prints revealed that consumer prices still remain ‘somewhat elevated’ in the world’s largest economy.
In the September meeting, the US Fed slashed the benchmark interest rate by 50 basis points (bps) or (½) half a percentage point to 4.75 per cent-5 per cent for the first time in four years after policymakers expressed confidence that inflation was consistently on track to come near the target level. One bps is equal to one hundredth (1/100) of a percentage point.
After raising the policy rate by 5.25 percentage points since March 2022 in one of the swiftest Fed reactions to combat the worst outbreak of inflation in 40 years, the central bank has held the rate on hold since July 2023 to anchor in high inflation and consistently bring it down toward the two per cent target range.
Stay tuned to our US Fed Meeting Live blog for the latest updates on FOMC meeting outcome.
US Fed Meeting LIVE: Powell-led FOMC to meet next in January
US Fed Meeting LIVE: US Fed Chair Powell-led FOMC will now meet on January 28-29 to deliberate for the next set of policy decisions.
US Fed Meeting LIVE: Key highlights of Powell-led FOMC decision
US Fed Meeting LIVE: Here are the key highlights from the December policy verdict
-Powell-led FOMC slashes key rates for the third straight time and delivered a 25 bps cut for the second straight meeting
-US Fed envisions fewer rate cuts in 2025 and slower pace of easing over somewhat ‘elevated’ inflation. Two rate cuts eyed in 2025
-Policymakers raised the median forecast for headline inflation in 2025 to 2.5 per cent, up from 2.1 per cent in September.
The US Fed tweaked the rate on a key RRP tool for the first time since 2021. The US central bank on Wednesday said it was continuing to shrink its balance sheet.
-Wall Street rocked after US Fed rate cut outlook. Dow crashed by 1,100 points to log its longest losing streak since 1974; S&P 500, Nasdaq reported worst day in five months.
Worth noting: Despite the declines, the Dow is up nearly 12.3 per cent on the year, while the S&P has rallied about 23 per cent and the Nasdaq has shot up more than 29 per cen, lifted largely by technology companies and enthusiasm around artificial intelligence, along with prospects of a lower rate environment and more recently, the hope of deregulation policies from President-elect Donald Trump’s incoming administration.
US Fed Meeting LIVE: US Fed rate cut outlook rocks Wall Street; Dow, S&P 500 log worst day in five months
The Dow and S&P saw their biggest one-day percentage decline since August 5 and the Nasdaq saw its biggest daily decline since July 24. The Dow Jones Industrial Average fell 1,123.03 points, or 2.58 per cent, to 42,326.87.
S&P 500 fell below the 6,000 level to lose 178.45 points, or 2.95 per cent, to 5,872.16 and the Nasdaq Composite lost 716.37 points, or 3.56 per cent, to 19,392.69. For the Dow it was its tenth consecutive daily loss, marking its longest losing streak since 1974 and its biggest daily percentage decline since early August.
The small cap Russell 2000 dropped 4.4 per cent, its biggest drop since June 16, 2022. Small cap stocks are seen as more likely to benefit from a lower interest rate environment. Cryptocurrency related stocks fell, with losses accelerating after Powell said the central bank is not allowed to own bitcoin and is not seeking a law change in order to do so.
US Fed Meeting LIVE: Gold falls more than 2% after Fed signals rate-cut slowdown in 2025
US Fed Meeting LIVE: Gold slipped more than two per cent to a one-month low on Wednesday after the U.S. Federal Reserve lowered interest rates as expected, but noted it will slow the pace at which borrowing costs fall any further, boosting the dollar and bond yields.
Spot gold was down 2.1 per cent at $2,589.91 per ounce by 03:56 p.m. EST (2056 GMT), its lowest level since November 18. US gold futures settled 0.3 per cent lower at $2,653.30. Elsewhere, spot silver fell 3.5 per cent to $29.45 per ounce, platinum slipped two per cent to $919.25, and palladium declined three per cent to $906.88.
US Fed Meeting LIVE: Wall Street analysts on US Fed policy verdict
US Fed Meeting LIVE: FX Market Analyst Kyle Chapman at Ballinger Group on US Fed verdict:
“The Fed cut to appease markets despite key contradictions, but points to only two next year. The Federal Reserve has cut by 25bps to 4.25-4.50%, but policymakers have revised up growth, inflation, and their expectation for the fed funds rate in 2025.
“The markets were expecting three cuts to be pencilled into the dot plot for next year and instead it was two. There were very few changes to the policy statement, so it is the SEP lifting Treasury yields and the dollar. Powell may say that Trump’s potential policy isn’t yet being integrated into the models, but that doesn’t stop his peers from implicitly including a fiscal inflationary impulse and tariffs in their rate projections. It is that and the recent stall in disinflationary progress that have led to the more hawkish expectations.
“The key contradiction for me here is that everything in the projections – higher growth, higher inflation, lower unemployment – actually all points to the appropriate decision today being a rate pause. Three officials have said as much in the dot plot. So why did they cut? Largely because they hinted that they would, and because the market was pricing in one – not necessarily because the current data justifies it.
“I would caution against taking too much steer from the dot plot. Narratives about inflation and the labour market have swung countless times over the past few years (remember when markets were pricing in three 50bp rate cuts before the end of this year?) and both the market and the Fed were fooled by an inflation head-fake before, back in Q1.”
US Fed Meeting LIVE: S&P 500 just shy of most significant losing mark in 2024, Dow crashes over 1,110 points
US Fed Meeting LIVE: The S&P 500 fell 2.9 per cent, just shy of its biggest loss for the year from the summer, to pull further from its all-time high set a couple weeks ago. The Dow Jones Industrial Average lost 1,123 points, or 2.6 per cent, and the Nasdaq composite dropped 3.6 per cent.
Wall Street experts say the bigger question centers on how much more the Fed will cut next year. A lot is riding on it, particularly after expectations for a series of cuts in 2025 helped the US stock market set an all-time high at least 57 times in 2024.
Fed officials released projections on Wednesday showing the median expectation among them is for two more cuts to the federal funds rate in 2025, or half a percentage point’s worth. That’s down from the four cuts expected just three months ago.
The S&P 500 fell 178.45 points to 5,872.16. The Dow Jones Industrial Average dropped 1,123.03 to 42,326.87, and the Nasdaq composite skidded 716.37 to 19,392.69.
In stock markets abroad, London’s FTSE 100 edged up by less than 0.1% after data showed inflation accelerated to 2.6 per cent in November, its highest level in eight months. The Bank of England is also meeting on interest rates this week and will announce its decision on Thursday.
US Fed Meeting LIVE: Canadian dollar hits new low on scramble for downside protection
US Fed Meeting LIVE: The Canadian dollar edged to a multi-year low against its US counterpart on Wednesday as investors awaited a US Federal Reserve interest rate decision and sought protection against additional losses for the currency.
The loonie was trading 0.1 per cent lower at 1.4330 to the US dollar, or 69.78 US cents, after touching its weakest intraday level since the onset of the COVID-19 crisis in March 2020 at 1.4339. Investors and companies use options to hedge their currency exposure. The currency touched a low of 1.4667 in March 2020.
Domestic political uncertainty has added this week to headwinds for the loonie. The currency has also been pressured by the threat of U.S. trade tariffs and a more aggressive interest rate cutting campaign by the Bank of Canada than the US Federal Reserve.
US Fed Meeting LIVE: US stocks fall to their second-worst drop of the year on diminished hopes for 2025 rate cuts
US Fed Meeting LIVE: US stocks fall to their second-worst drop of the year on diminished hopes for 2025 rate cuts. Dow dropped over 1,100 points. Powell reiterated at the press conference that the Fed was committed to reaching its two per cent target.
“We’re not going to settle for that,” he said about inflation staying above that goal. Markets are reacting to several Fed officials penciling in fewer rate cuts for next year than they expected a few months ago. Traders are now pricing in less than a half-point of cuts in 2025.
US Fed Meeting LIVE: Wall Street sinks after Fed signals fewer rate cuts next year. Dow drops 1,100
US Fed Meeting LIVE: US stocks sank to their second-worst loss of the year after the US Federal Reserve signalled that it may deliver fewer interest rate cuts in 2025 than earlier thought. The S&P 500 dropped 2.9 per cent on Wednesday, pulling further from its all-time high set a couple of weeks ago.
The Dow Jones Industrial Average sank more than 1,100 points, and the Nasdaq composite dropped 3.6 per cent. Fed officials released projections showing they’re penciling in just two cuts to interest rates next year, instead of the four they were projecting a few months ago.
US Fed Meeting LIVE: US crude futures turn negative post-Fed verdict
US Fed Meeting LIVE: US crude futures turned negative post-settlement after US Federal Reserve signaled it will slow pace of interest rate cuts in 2025. The FOMC slashed the benchmark rate by 25 bps to 4.25-.4.50% on Wednesday
US Fed Meeting LIVE: US Fed tweaks rate on key RRP tool for first time since 2021
US Fed Meeting LIVE: The Federal Reserve, in addition to its main interest-rate cut, lowered the rate on a facility used to help control its benchmark as it aims to keep US funding markets running smoothly. Officials lowered the rate on the overnight reverse repurchase agreement facility relative to the lower bound of the target range by five basis points, according to their Wednesday policy statement.
Taken together with the Fed’s reduction in the overall target range for the fed funds rate to 4.25 per cent to 4.50 per cent, the new RRP rate is 4.25 per cent — in line with the lower bound for the first time since 2021.
Financial institutions currently have some $132 billion in cash squirreled away at the Fed’s overnight RRP facility, which offers money-market investors with an alternative investment in order to help create a floor beneath overnight interest rates, according to the New York Fed.
That’s compared to a peak of $2.55 trillion stashed at the end of 2022. On Wall Street, balances at the facility are used to gauge how much excess liquidity is in the US financial system — and therefore how much further the Fed can keep unwinding its balance sheet via a process known as quantitative tightening.
The central bank on Wednesday said it was continuing to shrink its balance sheet. The downshift was foreshadowed in the minutes of the Fed’s November meeting, in which policymakers revealed they saw value in a potential “technical adjustment” so the RRP rate would be equal to the bottom of the target range for the federal funds rate.
Market watchers have said the move is likely to exert downward pressure on money market rates and further impact the amount of funds held at the Fed facility. Officials last tinkered with the tools when it raised the rate on the RRP facility in June 2021 as a dollar glut in short-term funding markets outstripped supply of investable securities and weighed down front-end rates, despite the steadiness of the Fed’s key benchmark.
At the time, there was $521 billion in cash at the overnight RRP facility. Dallas Fed President Lorie Logan had said in a speech in October if balances in the facility don’t decline as repo rates rise closer to the interest rate on reserve balances, it may be appropriate to reduce the RRP rate.
US Fed Meeting LIVE: Wall Street tumbles after the Federal Reserve hints at just two rate cuts for 2025
US Fed Meeting LIVE: US stocks are tumbling toward their worst day in four months after the US Federal Reserve hinted Wednesday it may deliver fewer of the cuts to interest rates that Wall Street loves than earlier thought.
The S&P 500 dropped 2.6 per cent to pull further from its all-time high set a couple weeks ago. The Dow Jones Industrial Average sank 961 points, or 2.2 per cent, with less than half an hour remaining in trading, and the Nasdaq composite dropped 3.5 per cent.
The yield on the 10-year Treasury rose to 4.49 per cent from 4.40 per cent late Tuesday. The two-year yield, which more closely tracks expectations for Fed action, climbed to 4.35 per cent from 4.25 per cent.
On Wall Street, stocks of companies that can feel the most pressure from higher interest rates fell to some of the worst losses. Real-estate owners in the S&P 500 fell 3.6 per cent, for example, for one of the largest losses among the 11 sectors that make up the index.
Stocks of smaller companies also did poorly. Many need to borrow to fuel their growth, making them potentially more vulnerable to higher interest rates, and the Russell 2000 index of small-cap stocks fell 3.4 per cent. That was nearly double the S&P 500’s fall.
US Fed Meeting LIVE: Powell says ‘optimistic’ about ‘very good’ US economy
US Federal Reserve Chair Jerome Powell offered an upbeat outlook on the US economy on Wednesday, saying the labor market had slowed somewhat but remained solid.
“I feel very good about where the economy is,” Powell said at a news conference after the central bank lowered interest rates. “Honestly, I’m very optimistic about the economy, and we’re in a really good place.”
US Fed Meeting LIVE: Fed can’t own bitcoin and isn’t seeking power, Fed’s Powell says
US Fed Meeting LIVE: US Federal Reserve Chairman Jerome Powell said the US central bank has no desire to hold the cryptocurrency Bitcoin amid debate over whether the incoming Trump administration might create some sort of government-owned stock of the asset.
“We’re not allowed to Bitcoin,” Powell said a press conference following the latest Federal Open Market Committee meeting. In terms of the legal issues around holding Bitcoin, “that’s the kind of thing for Congress to consider, but we are not looking for a law change at the Fed.”
US Fed Meeting LIVE: Gold hits one-month low after Fed signals slower easing pace in 2025
US Fed Meeting LIVE: Gold slipped more than one per cent to a one-month low on Wednesday after the US Federal Reserve lowered interest rates as expected, but noted it will slow the pace at which borrowing costs fall any further, boosting the dollar and Treasury yields.
Spot gold was down 1.5 per cent at $2,606.64 per ounce, its lowest since Nov. 18. US gold futures settled 0.3 per cent down at $2,653.30. Fed Chair Jerome Powell said that Fed policymakers want to see more progress on bringing inflation down as they consider the path of future rate cuts.
Elsewhere, spot silver fell 2.3 per cent to $29.83 per ounce, platinum slipped 1.8 per cent to $922, while palladium declined 2.5 per cent to $910.94. Traders now will be watching out for key US GDP and inflation data due later this week that could further shape expectations around monetary policy.
US Fed Meeting LIVE: US Fed now ‘significantly closer’ to end of easing cycle, says Powell
US Fed Meeting LIVE: After lowering interest rates three times, the US Federal Reserve is now “significantly closer” to the point where no further cuts will be needed, Chair Jerome Powell said Wednesday.
Powell, speaking at a news conference after the Fed reduced interest rates by a quarter point, said the central bank was now much closer to the “neutral rate” where inflation is adequately mitigated and Fed policies no longer need to be designed to speed or slow growth.
US Fed Meeting LIVE: Treasuries slide as Fed officials signal fewer 2025 rate cuts
US Fed Meeting LIVE: Treasury yields climbed after the US Federal Reserve cut interest rates for a third straight time as expected and signalled that their pace next year is likely to be slower.
The two-year note’s yield, more sensitive than longer maturities to US Fed policy shifts, led the move, rising as much as eight basis points to 4.33 per cent, the highest level since November 25.
The US central bank lowered its target range for a key overnight lending rate by a quarter percentage point to 4.25 per cent-4.5 per cent, a full percentage point lower than its recent peak.
The Fed’s policy rate is a key input for Treasury yields, and fading expectations for additional rate cuts since September have driven them back above the four per cent threshold to the highest levels since at least July.
The benchmark 10-year note’s yield at about 4.43 per cent is about 80 basis points higher since mid-September, creating losses for investors who bought at the lowest yield levels.
US Fed Meeting LIVE: Oil settles up after US crude stocks fall, Fed’s 2025 outlook curbs gains
US Fed Meeting LIVE: Oil prices settled higher on Wednesday after US crude inventories fell and the US Federal Reserve cut interest rates as expected, but gains were capped as the US Fed signalled it would slow the pace of cuts.
Brent futures settled up 20 cents, or 0.27 per cent, to $73.39 a barrel. US West Texas Intermediate crude settled up 50 cents, or 0.71 per cent, to $70.58. Both benchmarks retreated from gains of more than $1 a barrel at session highs.
US crude stocks and distillate inventories fell while gasoline inventories rose in the week ending December 13, the Energy Information Administration said on Wednesday. Total product supplied, a proxy for demand, was 20.8 million barrels per day, up 662,000 bpd from the prior week.
US Fed Meeting LIVE: US stocks decline after Fed cuts rates as expected
US Fed Meeting LIVE: US stocks fell on Wednesday, erasing earlier gains after the Federal Reserve cut interest rates by a quarter of a percentage point and the central bank’s economic projections signalled a slower pace of cuts next year. Investors were watching comments from Fed Chair Jerome Powell for more insight on the path of interest rates from the central bank.
The Dow Jones Industrial Average fell 266.21 points, or 0.61 per cent, to 43,183.69, the S&P 500 lost 47.02 points, or 0.78 per cent, to 6,003.62 and the Nasdaq Composite lost 182.44 points, or 0.91 per cent, to 19,926.62. The Dow was on track for its 10th straight session of declines, which would mark its longest daily streak of losses since an 11-session skid in October 1974.
US Treasury yields moved higher after the statement as the benchmark US 10-year note rose 6.3 basis points to 4.448 per cent. Higher interest rates are usually seen as a drag to the equity market, boosting the appeal of less risky assets while crimping the ability of companies to grow earnings.
US Fed Meeting LIVE: Fed’s Powell says rate path depends on more progress bringing down inflation
US Fed Meeting LIVE: Federal Reserve Chair Jerome Powell said on Wednesday that Fed policymakers want to see more progress on bringing inflation down as they consider the path of future rate cuts, as inflation has exceeded year-end projections.
“As we think about further cuts, we’re going to be looking for progress on inflation. We have been moving sideways on 12-month inflation” Powell told a news conference after the Fed cut rates and signaled a slowing of the pace of future reductions.
“As we go forward, we’re going to want to be seeing further progress on bringing inflation down, and keeping a solid labor market.”
US Fed Meeting LIVE: Gold drops as US Fed sees slower pace of further cuts in 2025
US Fed Meeting LIVE: Gold prices slipped 1% to a near two-week low on Wednesday after the U.S. Federal Reserve lowered interest rates as expected, but noted it will slow the pace at which borrowing costs fall any further, boosting the dollar and Treasury yields. Spot gold was down 0.9% at $2,622.71 per ounce by 02:26 p.m. ET (1926 GMT). U.S. gold futures settled down 0.3% at $2,653.30.
Elsewhere, spot silver fell 1.6% to $30.05 per ounce, platinum slipped 1.1% to $927.90, while palladium declined 1.8% to $918.23. Futures on the federal funds rate have priced in that the overnight benchmark rates will remain unchanged at the Fed’s January policy meeting. Higher rates reduce the appeal of holding the non-yielding asset.
US Fed Meeting LIVE: US dollar rises against peers after Fed delivers rate cut
US Fed Meeting LIVE: The US dollar advanced against its peers on Wednesday after the Federal Reserve delivered a widely expected interest rate cut while also indicating it would slow the pace of its monetary policy easing cycle. The yield on benchmark US 10-year notes rose 6.1 basis points to 4.446 per cent, hitting a four-week high.
The dollar strengthened 0.72 per cent to 0.89895 against the Swiss franc in choppy trading. The euro was down 0.88 per cent at $1.0397. The US dollar index, which measures the greenback against six rivals, was up 0.83 per cent at 107.82, rising to a near four-week high.
US Fed Meeting LIVE: US Fed now ‘significantly closer’ to end of easing cycle: Powell
US Fed Meeting LIVE: “I think that a slower pace of (rate) cuts really reflects both the higher inflation readings we’ve had this year and the expectations that inflation will be higher” in 2025, Chair Jerome Powell said at a news conference. “We’re closer to the neutral rate, which is another reason to be cautious about further moves.” “Nonetheless,” Powell said, “we see ourselves as still on track to cut.”
US Fed Meeting LIVE: Gold drops as US Fed sees slower pace of further cuts in 2025
US Fed Meeting LIVE: Gold prices slipped one per cent to a near two-week low on Wednesday after the US Federal Reserve lowered interest rates as expected, but noted it will slow the pace at which borrowing costs fall any further, boosting the dollar and Treasury yields.
US central bankers issued fresh projections calling for two quarter-point interest-rate cuts next year amid rising inflation, a forecast consistent with a wait-and-see approach come January as Donald Trump takes the White House.
Spot gold was down 0.9 per cent at $2,622.71 per ounce. US gold futures settled down 0.3 per cent at $2,653.30. Following the US Fed verdict, the dollar extended gains, making gold more expensive for other currency holders, while the benchmark US 10-year yield hit a fresh four-week high. Elsewhere, spot silver fell 1.6 per cent to $30.05 per ounce, platinum slipped 1.1 per cent to $927.90, while palladium declined 1.8 per cent to $918.23.
US Fed Meeting LIVE: US inflation remains ‘somewhat elevated’: Fed chair Powell
US Fed Meeting LIVE: While inflation has “eased significantly,” the level remains “somewhat elevated” compared to the targeted two per cent, US Federal Reserve Chair Jerome Powell said Wednesday.
Powell’s comments came at the start of a news conference after the central bank announced it cut interest rates by a quarter point while signaling a slower pace of cuts ahead in the face of lingering concerns about consumer price pressures.
US Fed Meeting LIVE: US Fed policymakers voted 11 to 1 for rate cut
US Fed Meeting LIVE: Slower progress on inflation, which is not seen returning to the two per cent target until 2027, translates into a slower pace of rate cuts and a slightly higher ending point of 3.1 per cent, also hit in 2027, versus the prior “terminal” rate of 2.9 per cent seen as of September.
Fed officials also boosted their estimate of the long-run neutral rate of interest to three per cent. The reduction in the benchmark policy rate to the 4.25 per cent-4.50 per cent range was opposed by Cleveland Fed President Beth Hammack, who preferred to leave the policy rate unchanged.
US Fed Meeting LIVE: FOMC on risks to economy, labor market
“In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments,” said the US Fed in its statement
US Fed Meeting LIVE: Jerome Powell speaks after US Fed verdict
US Fed Meeting LIVE: Catch US Fed chair Jerome Powell’s remarks live here
US Fed Meeting LIVE: FOMC statement
In its policy statement, the US Fed said, “In support of its goals, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4-1/4 to 4-1/2 per cent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.”
“The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its two per cent objective,” added the FOMC in its statement.
US Fed Meeting LIVE: US Fed policymakers eye slower pace of cuts on elevated inflation
US Fed Meeting LIVE: US Fed officials have underscored that they are slowing their rate reductions as their benchmark rate nears a level that policymakers refer to as “neutral” — the level that is thought to neither spur nor hinder the economy. Wednesday’s projections suggest that policymakers may think they are not very far from that level. Their benchmark rate stands at 4.3 per cent after Wednesday’s move, which followed a steep half-point reduction in September and quarter-point cut last month.
US Fed Meeting LIVE: Wall Street slips after the Federal Reserve hints just two rate cuts for 2025
US Fed Meeting LIVE: US stock indexes are edging lower after the Federal Reserve signaled it may deliver fewer cuts to interest rates next year than earlier thought. The S&P 500 fell 0.3 per cent Wednesday immediately after the Fed’s highly anticipated announcement. The Dow Jones Industrial Average lost 38 points, and the Nasdaq composite slipped 0.4 per cent.
The Fed cut its main interest rate for the third time this year, but that was widely expected. More attention was on projections Fed officials released about where they see rates heading next year. The median forecast is calling for just two cuts, down from four just three months ago. Treasury yields rose.
US Fed Meeting LIVE: US Fed attentive to risks, “inflation somewhat elevated”
“Recent indicators suggest that economic activity has continued to expand at a solid pace. Since earlier in the year, labour market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committee’s two per cent objective but remains somewhat elevated.
The Committee seeks to achieve maximum employment and inflation at the rate of two per cent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate,” said the US Fed in its statement.
US Fed Meeting LIVE: US Fed pencils in just two quarter-point cuts in 2025
US Fed Meeting LIVE: US central bankers now project they will make just two quarter-percentage-point rate reductions by the end of 2025. That is half a percentage point less in policy easing next year than officials anticipated as of September.Fed projections of inflation for the first year of the new Trump administration jumping from 2.1 per cent in their prior projections to 2.5 per cent in the current ones – well above the central bank’s two per cent target.
Slower progress on inflation, which is not seen returning to the two per cent target until 2027, translates into a slower pace of rate cuts and a slightly higher ending point of 3.1%, also hit in 2027, versus the prior “terminal” rate of 2.9 per cent seen as of September.
US Fed Meeting LIVE: US Fed hikes 2025 headline inflation outlook to 2.5%
US Fed Meeting LIVE: In updated economic forecasts, members of the Fed’s rate-setting committee penciled in just two quarter-point rate cuts in 2025, down from an earlier prediction of four, and hiked their inflation outlook for next year, from 2.1 per cent to 2.5 per cent. The Fed has made progress tackling inflation through interest rate hikes in the last two years, and recently began paring back rates to boost demand in the economy and support the labor market.
US Fed Meeting LIVE: US Fed cuts rate by quarter-point in third straight reduction
US Fed Meeting LIVE: The US Federal Reserve cut interest rates by a quarter point Wednesday and signaled a slower pace of cuts ahead, amid uncertainty about inflation and President-elect Donald Trump’s economic plans.
Policymakers voted 11-to-1 to lower the US central bank’s key lending rate to between 4.25 per cent and 4.50 per cent, the Fed announced in a statement. They also penciled in just two quarter-point rate cuts for next year, and sharply hiked their inflation outlook for 2025.
US Fed Meeting LIVE: Gold edges down as markets eye Fed’s 2025 monetary policy outlook
US Fed Meeting LIVE: Gold prices edged lower as the dollar held firm on Wednesday, with investors awaiting a key US Federal Reserve decision expected to shape market sentiment and gold’s trajectory by outlining the central bank’s 2025 outlook.
Spot gold slipped 0.4 per cent to $2,634.88 per ounce by 12:03 p.m. ET. US gold futures were down 0.4 per cent at $2,651.20. Non-yielding gold tends to do well in a low-interest-rate environment.
Spot silver fell 1.3 per cent to $30.13 per ounce, platinum slipped 0.8 per cent to $930.75, while palladium declined one per cent to $925.04. While markets are pricing in a 99 per cent probability of a 25 basis point rate cut during this meeting, the chances of another reduction in January stand at only 19 per cent.
US Fed Meeting LIVE: US inflation impact on Fed policy review
US Fed Meeting LIVE: “If Trump imposes a 60 per cent tariff on Chinese imports and 10 to 20 per cent tariff on imports from other countries, that would trigger inflation and jeopardise the Fed’s policy of containing inflation, necessitating a rethink of the Fed’s present policy of rate cut. This has the potential to negatively impact global stock markets,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The latest inflation numbers, along with strong consumer spending and economic growth, will keep US Fed officials cautious as they debate how quickly to reduce borrowing costs in the months to come. While the labor market is cooling, a retreat in inflation has been key to policymakers’ rationale for cutting interest rates.
US Fed Meeting LIVE: Wall Street drifts ahead of the Federal Reserve’s rate decision
US Fed Meeting LIVE: US stock indexes are drifting higher Wednesday as Wall Street waits for an announcement from the US Federal Reserve that could guide its direction into next year.
The S&P 500 rose 0.2 per cent to inch closer to its all-time high set earlier this month. The Dow Jones Industrial Average was up 173 points, or 0.4 per cent, as of 12:56 p.m. Eastern time, and the Nasdaq composite added 0.2 per cent.
US Fed Meeting LIVE: Oil rises after US crude stocks fall, investors await Fed’s move
US Fed Meeting LIVE: Oil prices edged higher on Wednesday after US crude inventories fell and as investors eyed a likely interest rate cut by the US Federal Reserve while weighing its projections for 2025.
Brent futures were up 60 cents, or 0.82 per cent, to $73.79 a barrel. US West Texas Intermediate crude was up 88 cents, or 1.26 per cent, to $70.96. Both benchmarks retreated from gains of more than $1 a barrel at session highs.
US crude stocks and distillate inventories fell while gasoline inventories rose in the week ending December 13, the Energy Information Administration (EIA) said on Wednesday. Total product supplied, a proxy for demand, was at 20.8 million bpd, up 662,000 bpd from the prior week.
US Fed Meeting LIVE: US, European stocks edge higher in anticipation of Fed’s ‘hawkish cut’
US Fed Meeting LIVE: US and European shares moved higher in early trading on Wednesday, as investors looked ahead to the US Federal Reserve’s policy rate decision due later in the session. Crude prices rebounded and the dollar gained strength in advance of the US central bank taking stage later in the day.
The Dow Jones Industrial Average rose 222.43 points, or 0.50 per cent, to 43,668.27, the S&P 500 rose 18.84 points, or 0.31 per cent, to 6,069.45 and the Nasdaq Composite rose 63.25 points, or 0.31 per cent, to 20,172.31.
European shares inched higher, buoyed by Renault on talks of a potential merger between Japan’s Honda and Nissan, but gains were held in check ahead of the Fed decision.
MSCI’s gauge of stocks across the globe rose 1.53 points, or 0.18 per cent, to 865.55. The STOXX 600 index rose 0.29 per cent, while Europe’s broad FTSEurofirst 300 index rose 5.84 points, or 0.29 per cent.
Emerging market stocks rose 3.31 points, or 0.30 per cent, to 1,096.51. MSCI’s broadest index of Asia-Pacific shares outside Japan closed higher by 0.27 per cent, to 581.24, while Japan’s Nikkei fell 282.97 points, or 0.72 per cent, to 39,081.71.
US Fed Meeting LIVE: US stocks ahead of FOMC verdict
US Fed Meeting LIVE: Nissan, Honda and Nissan alliance member Mitsubishi Motors Corp. agreed in August to share components for electric vehicles like batteries and to jointly research software for autonomous driving to adapt better to dramatic changes in the auto industry.
In Japan, where the Bank of Japan will wrap up its own policy meeting on Friday, the Nikkei 225 slipped 0.7 per cent. That was despite a 23.7 per cent jump for Nissan Motor Corp., which said it was in talks on closer collaboration with Honda Motor Co., though no decision had been made on a possible merger. Honda Motor’s stock lost three per cent.
US Fed Meeting LIVE: US Fed policy outlook for 2025
US Fed Meeting LIVE: One big challenge US Fed chair Jerome Powell will face during the post-decision press conference on Wednesday is how to defend the Fed’s expected vote to cut rates, given that the US economy and the labor market are both in relatively good health, while inflation has ticked higher.
The futures markets broadly expect that, after Wednesday’s likely cut, the Fed will pause at the next decision in January 2025, and place a probability of around 70 per cent that it will make no more than two additional quarter-point cuts next year, according to CME Group data.
The US Fed has a dual mandate from Congress to act independently to tackle inflation and unemployment. But it still has to deal with the implications of government policies on the broader economy.
US Fed Meeting LIVE: Wall Street rises with all eyes on Fed decision and forecasts
US Fed Meeting LIVE: The Dow is set to snap a nine-session losing streak, its longest since February 1978, lifted by UnitedHealth Group’s 3.2 per cent rise.
Despite some jitters over future Fed policy, stocks are on track to end the year strong with the S&P 500 up over 27 per cent, the Nasdaq up over 34 per cent and the Dow up nearly 16 per cent.
The rally has been fueled by technology companies that capitalized on the euphoria around artificial intelligence, the prospects of a lower rate environment and hope of pro-business policies from the incoming Donald Trump administration.
The Dow Jones Industrial Average rose 160.68 points, or 0.37 per cent, to 43,610.58, the S&P 500 gained 12.56 points, or 0.21 per cent, to 6,063.10 and the Nasdaq Composite gained 37.96 points, or 0.19 per cent, to 20,147.02.
Higher interest rates are typically negative for the equity market, making less risky investments more attractive and pressuring companies’ stock prices as their growth slows. The S&P 500 posted five new 52-week highs and eight new lows, while the Nasdaq Composite recorded 67 new highs and 106 new lows.
US Fed Meeting LIVE: US Fed rate cut trend
US Fed Meeting LIVE: In September, the US Fed kicked off its monetary policy easing cycle and voted 11 to 1 to lower the federal funds rate after holding it at over a two-decade high for over a year. It was the US Fed’s first rate cut after four years. The US Fed maintained the key borrowing rate elevated at a 23-year high for 14 consecutive months since July 2023 to combat the worst inflation outbreak in almost 40 years.
In September’s meeting, US Fed policymakers said they see the interest rate falling by another 50 bps by the end of this year, another full percentage point in 2025, and a final half-point reduction in 2026 to end in a 2.75 per cent-3.00 per cent range. One bps equals one hundredth (1/100) of a percentage point.
In November, the FOMC slashed its benchmark interest rate by (25 bps) a quarter of a percentage point, for the second straight meeting after reducing the policy rate in September 2024. US Fed Chairman Jerome Powell has repeatedly said that the central bank does not need to rush to cut interest rates due to the ongoing economic growth, a solid job market, and US inflation that still hovers above the Fed’s two per cent target.
The US Fed hiked rates by 5.25 percentage points between March 2022 and July 2023 to tame inflation. These hikes helped lower inflation from 9.1 per cent in June 2022 to 2.5 per cent. However, high rates have made borrowing costlier for businesses and households. Economists say policymakers must keep rates high enough to defeat rising inflation without derailing the economy.
US Fed Meeting LIVE: Oil rises 1% after US crude stocks fall, investors eye Fed’s next move
US Fed Meeting LIVE: Oil prices rose on Wednesday after US crude inventories fell and as investors eyed a potential interest rate cut by the US Federal Reserve while weighing its projections for 2025.
Brent futures shot up more than $1 at their session high, and were up 86 cents, or 1.18 per cent, to $74.02 a barrel. US West Texas Intermediate crude was up $1.06, or 1.51 per cent, to $71.14.US crude stocks and distillate inventories fell while gasoline inventories rose in the week ending December 13, the Energy Information Administration (EIA) said on Wednesday.
US Fed Meeting LIVE: US Fed Chairman Jerome Powell indicated a gradual rate cut process is a “prudent course of action…”
US Fed Meeting LIVE: United States Federal Reserve Chairman Jerome Powell indicated that, based on the economic data, the prudent course of action would be to gradually approach a rate-cut strategy.
“if the data allow us to proceed a bit more gradually, that seems to be the prudent course of action,” said Powell.
US Fed Meeting LIVE: US Federal Reserve Chairman earlier said that the US economy signals “no hurry” to cut interest rates.
US Fed Meeting LIVE: United States Federal Reserve Chairman Jerome Powell earlier indicated that the committee is in no hurry to reduce the key benchmark interest rates. The Chairman also indicated that the committee will be more careful in the rate cut approach.
“The economy is not sending any signals that we need to be in a hurry to lower rates. The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully,” said Powell at a Fed event at Dallas.
US Fed Meeting LIVE: US stocks grind higher before Fed verdict; Brazil on Edge
US Fed Meeting LIVE: US stocks climbed as investors braced for the Federal Reserve’s final policy decision of 2024 and its outlook for next year. The S&P 500 rose 0.3 per cent while the Nasdaq 100 fluctuated between modest gains and losses. The Dow Jones Industrial Average jumped, putting it on track to snap its longest losing streak since 1978. The yield on the 10-year Treasury hovered around 4.40 per cent.
Brazil’s financial markets are in the cross-hairs as investors lose faith in the government’s ability to contain a deepening fiscal crisis. The real has been the worst-performing currency in the world over the past four sessions, adding to a 21 per cent drop this year against the greenback.
US Fed Meeting LIVE: Wall Street drifts ahead of the Federal Reserve’s rate decision
US Fed Meeting LIVE: US stock indexes are drifting higher Wednesday as Wall Street waits for an announcement from the US Federal Reserve that could guide its direction into next year.
The S&P 500 rose 0.3 per cent to inch closer to its all-time high set earlier this month. The Dow Jones Industrial Average was up 220 points, or 0.5 per cent, as of 11 a.m. Eastern time, and the Nasdaq composite added 0.3 per cent.
Nvidia, the superstar responsible for a chunk of Wall Street’s rally to records in recent years, climbed 4.3 per cent following a weekslong funk. It had dropped more than 12 per cent from its record set last month and fallen in eight of the nine previous days as its big momentum slowed.
US Fed Meeting LIVE: US Fed’s dual mandate for policy review
US Fed Meeting LIVE: According to Garima Kapoor, Economist at domestic brokerage Elara Securities (India) Pvt Ltd, the US Fed will likely play a ‘cut-and-pause’ game in 2025 to meet its dual mandate of keeping US inflation under control and supporting the overall economic growth.
‘The moderation in US inflation from Q2 and mid-CY25 is set to start the next phase of the cut cycle. We expect a 50 bps cut in CY25E, pushing the Fed funds rate to 4.00-4.25 per cent, which serves two purposes: 1) puts the rates closer to neutral, and 2) aids the US Fed to balance upside from tariff risks and capping inflationary impulses as well as keeping the growth intact,” said Kapoor.
