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Fed Cuts Rates, Revises Future Cuts Amid Inflation Concerns

5/10/2025

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Summary

Story summary

The Federal Reserve lowered short-term interest rates by 0.25% on December 18.
Expected rate cuts for 2025 were revised down from four to two.
Fed Chair Jerome Powell stated inflation progress may extend to 2027.
Core PCE inflation is forecasted to reach 3.6% year-over-year by December 2025.
The Fed plans to reduce its Treasury securities portfolio, which may increase long-term interest rates.

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Story summary

The Federal Reserve lowered short-term interest rates by 0.25% on December 18.
Expected rate cuts for 2025 were revised down from four to two.
Fed Chair Jerome Powell stated inflation progress may extend to 2027.
Core PCE inflation is forecasted to reach 3.6% year-over-year by December 2025.
The Fed plans to reduce its Treasury securities portfolio, which may increase long-term interest rates.