Federal Reserve cuts rates by 0.25%. Suggests slower cuts in 2025.

By Joseph Capurso, Head of International and Sustainable Economics at CBA.

Key Points:

As was widely flagged, the FOMC cut the Funds rate by 25bp to a range of 4.25%-4.50%.
Concerns about the pace of disinflation imply the FOMC may skip an interest rate cut in January on its path to further, but limited, rate cuts in 2025.

What did the FOMC do?

The US Federal Open Market Committee (FOMC) has, as widely expected, cut the Fed Funds target rate by a further 25bp to a range of 4.25%-4.50%.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.