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Fed Announces Rate Cut by Quarter Pt, In Line; Cut Range to be Axed to Halt Pt Next Yr
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The US Fed announced on Wednesday that it would cut interest rates again, trimming the federal funds rate by a quarter of a percentage point to 4.25-4.5%, the third consecutive interest rate cut since the start of the rate-cutting cycle. The authorities expected interest rates to be cut by half a percentage point next year, a notable reduction from the one percentage point expected after the last interest rate decision. This means that there may be two interest rate cuts next year, down from four, with a quarter of a percentage point cut each time. In the latest post-interest rate statement, the Fed said it expected PCE inflation and core inflation to hike next year, with the median PCE inflation forecast being revised up from 2.1% to 2.5%. The authorities also revised up the forecast for US GDP growth to 2.1% next year. Federal Reserve Bank of Cleveland President Beth Hammack did not support the rate cut. Fed Chairman Jerome Powell is due to speak at 2:30 p.m. EST. AAStocks Financial News |
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