The December 2024 economic projections from the central bank show significant changes from the September figures. They indicate rising inflation and potential impact.

The Federal Reserve today made its final interest rate decision of 2024, capping a year during which the central bank provided some financial relief to inflation-weary borrowers in September by ushering in its first rate reduction in four years.

Inflation just hit a five-month high in November and asset prices are smashing records. The Federal Reserve has been communicating its ambition to stamp out inflation for over two years and yet it’s about to cut interest rates as prices continue to move in the wrong direction.

The Federal Reserve cut its key interest rate Wednesday by a quarter-point — its third cut this year — but also signaled that it expects to reduce rates more slowly next year than it previously envisioned, mostly because of still-elevated inflation.

More importantly, inflation is also proving stubborn. Some argue that the Fed should be willing to tolerate (even if only implicitly, rather than explicitly) inflation being a bit higher for a bit longer than it theoretically should. Mohamed A. El-Erian over on Bloomberg Opinion explains this “3% inflation target” view here.

The Federal Reserve lowered interest rates on Wednesday by an additional quarter percentage point while pulling back on planned rate cuts next year as inflation proves to be a bigger challenge ...

The Federal Reserve is likely to continue lowering interest rates, but the trend may not last in the new year.

WASHINGTON — An inflation gauge that is closely watched by the Federal Reserve barely rose last month in a sign that price pressures cooled after two months of sharp gains. Friday’s report ...

Federal Reserve leaders are unified in their resolve to quash the worst bout of inflation in four decades. They just no longer agree on how high to keep U.S. interest rates to achieve their goal.

The Federal Reserve's policymakers announced that they will cut the benchmark federal funds rate by a quarter point in December, marking the central bank's third straight cut.

The projections are a snapshot of individual committee members' best guesses on the future of unemployment, inflation and rate cuts. Economists expect that the average prediction will be three rate cuts in 2025, fewer than were expected when they last published their expectations in September.