The Federal Reserve lowered its benchmark interest rate by a quarter percentage point on Wednesday, Dec. 18, to a range of 4.25%-4.5%, but policymakers signaled caution about additional rate cuts next year in the face of stubborn inflation.
"I think we're in a good place, but I think from here it's a new phase and we're going to be cautious about further cuts," Federal Reserve Chair Jerome Powell said at a press conference after the central bank's policy-setting Federal Open Market Committee cut its benchmark interest rate at the end of a two-day meeting.
On average, members of the Fed's rate-setting committee said they expect borrowing costs to fall by only another half percentage point in 2025. Read more.