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Fed Cuts Rates Amid Inflation, Projects Future Stability

1/18/2025

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Summary

Story summary

The Federal Reserve reduced interest rates three times in late 2024, lowering the federal funds rate by one percentage point.
In 2025, the Fed anticipates only two rate cuts due to ongoing inflation and a robust labor market.
Credit card rates are projected to decrease to 19.8%, while mortgage rates may reach 6.5% by year-end.
Short-term CDs remain attractive for savers seeking flexibility and quick returns amid potential future rate hikes.

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Story summary

The Federal Reserve reduced interest rates three times in late 2024, lowering the federal funds rate by one percentage point.
In 2025, the Fed anticipates only two rate cuts due to ongoing inflation and a robust labor market.
Credit card rates are projected to decrease to 19.8%, while mortgage rates may reach 6.5% by year-end.
Short-term CDs remain attractive for savers seeking flexibility and quick returns amid potential future rate hikes.