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Federal Reserve Cuts Rates Again Amid Economic Uncertainties ...
2025-12-11 04:40:10
Economy
Finance

Federal Reserve Cuts Rates Again Amid Economic Uncertainties and Pressure

The US Federal Reserve has implemented its third consecutive interest rate cut, lowering rates by a quarter point to a range of 3.50 to 3.75 percent. This decision reflects ongoing weakness in the labor market and pressure from President Trump to stimulate economic growth, particularly in the housing sector.

Despite these cuts, concerns about potential inflation and divided opinions within the Fed complicate the outlook. Some officials argue for more aggressive reductions, while others advocate for a pause in future cuts.

The Fed anticipates modest GDP growth of 2.3 percent next year, alongside a projected inflation rate of 2.4 percent. Meanwhile, in Europe, the Ibex index has reached new heights, fueled by expectations of an end to global rate cuts, hinting at potential hikes in 2024. These developments underline the delicate balance central banks must maintain as they navigate economic uncertainties.

Related news on that topic:

Will the Fed's Interest Rate Cut Ease Economic Uncertainty?

The Federal Reserve is on the verge of implementing another interest rate cut, influenced significantly by external pressures, particularly from President Trump. As the economy exhibits mixed signals, with job growth slowing and inflation concerns rising, Fed members find themselves at an impasse. The internal divide is palpable, as some officials advocate for aggressive rate reductions while others caution against potential inflationary risks. Analysts predict a high probability of a quarter-point cut, which would adjust the key rate to between 3.50 and 3.75 percent. The upcoming decision is complicated by the looming potential for leadership changes within the Fed, creating an atmosphere of uncertainty. As investors await the Fed's move, anxiety permeates the market, reflecting the delicate balance the central bank must maintain between fostering economic growth and ensuring price stability.

Federal Reserve Cuts Interest Rates Amid Divided Views on Economy

The recent decision by the Federal Reserve to cut interest rates by 0.25 percentage points reflects deep concerns about the labor market and inflation. This marks the third rate cut this year, a move taken amidst a divided committee and incomplete economic data due to a government shutdown. Fed Chair Jerome Powell emphasized the need for unity, yet differing opinions within the board indicate ongoing uncertainty regarding the economic landscape. President Trump’s pressure on Powell and potential successors like Kevin Hassett have further complicated the situation. The rate cut aims to balance the risks of economic downturns against inflationary pressures, as the Fed anticipates inflation to gradually decrease. As market analysts speculate on future cuts, reactions have been mixed, with some sectors responding positively. However, borrowers may benefit from lower rates while savers could see diminishing returns on deposits. The unfolding scenario reflects a pivotal moment for U.S. monetary policy, as the Fed navigates through conflicting signals from the labor market and inflation trends, setting the stage for ongoing economic debates.

The press radar on this topic:

EL PAÍS
10. Dezember 2025 um 16:43

Ibex Marks New Historical Highs as Market Discounts Global Rate Cuts Have Ended

The Ibex index has reached new highs in Spain, driven by ACS, Amadeus, and Inditex. Global interest rate cuts are seen as ending, with potential hikes predicted for 2024, potentially boosting the euro to $1.20. Inflation exceeds 3% annually in Europe, influencing monetary policies. The US Federal Reserve's decision on interest rates is crucial, particularly regarding internal divisions among its members. Nomura predicts EU interest rate hikes, while silver prices have reached records above $60..
Tagesschau - Wirtschaft und Börsen-Nachrichten
10. Dezember 2025 um 19:31

US Monetary Policy Federal Reserve Cuts Key Interest Rate Again

The US Federal Reserve has cut its key interest rate for the third time in a row. The key interest rate was lowered by a quarter point to the new range of 3.50 to 3.75 percent. This was justified by weak signals from the labor market and the demands of US President Trump for sharp interest rate cuts, especially to stimulate the housing market. Federal Reserve Chairman Powell is under massive pressure, while experts warn that too rapid interest rate moves could backfire. Elmar Völker therefore..
Kinh doanh - VnExpress
10. Dezember 2025 um 19:16

Fed giảm lãi suất 0,25%

The Federal Reserve in the US has reduced interest rates by 0.25% for the third time this year. The move was expected by the market and is a response to a slowing economy, slower job growth, and rising inflation. Three Fed officials dissented from the decision, with one calling for an even larger cut. The move is expected to boost borrowing and spending, but also raises concerns about inflation. The Fed projects GDP growth of 2.3% next year and inflation at 2.4%, down from previous forecasts.
VnExpress English
11. Dezember 2025 um 02:50

US Fed lowers interest rates by 0.25 percentage points in third straight cut

The US Federal Reserve lowered interest rates by 0.25 percentage points for the third consecutive cut this year, bringing the range to 3.50-3.75%. Fed Chair Jerome Powell indicated that further reductions may be held off in the coming months. A rift within the central bank deepened with three officials voting against the modest reduction. The Fed penciled in one more rate cut next year and flagged heightened risks to employment.
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