Fed Expected To Announce Another 25 Basis Point Interest Rate Cut—With 2025 Rate Cuts Hints In Forefront
Forbes - Dec 18th, 2024
The Federal Reserve is anticipated to announce its third consecutive interest rate cut, with economists focusing on its projections for 2025. Analysts from major banks predict a reduction in the expected number of rate cuts next year, estimating a target range between 3.5% and 3.75% by the end of 2025. The market remains skeptical about these projections. Interest rates are expected to stay above 3% for a prolonged period, a level not seen from 2009 to 2021. Observers are also keen on any comments from Fed Chairman Jerome Powell regarding the potential impact of the incoming presidential administration on the Fed's independence. The core personal consumption expenditures index, the Fed's preferred inflation measure, was at 2.3% in October, suggesting inflation may rise due to tariffs proposed by President-elect Trump. The Fed may be cautious about further rate cuts until more is known about the inflationary impact of these tariffs.
RATING
The article provides a detailed analysis of the Federal Reserve's potential interest rate decisions and the economic context surrounding them. While it offers insights from credible sources, it lacks a balanced representation of perspectives and falls short in terms of transparency regarding its sources.
RATING DETAILS
The article accurately presents information regarding the Federal Reserve's potential interest rate decisions and includes projections from reputable financial institutions like BofA, Goldman, and JPMorgan. However, it could offer more specific data or references to support some of the claims.
The article primarily focuses on projections from a few major financial institutions and does not explore alternative viewpoints or counterarguments. Including opinions from a broader range of economists could improve the balance.
The article is generally clear and logically structured, with a neutral tone. However, it could improve by avoiding jargon and better explaining terms like 'FedWatch Tool' for a broader audience.
The article relies on credible sources such as BofA, Goldman, and JPMorgan, but specific citations or links to original reports are missing. This limits the ability to verify the information independently.
The article does not disclose any potential conflicts of interest or affiliations that could affect impartiality. It lacks transparency about the sources of its information and does not clarify the context of quoted statements.