It is the second consecutive rate cut since inflation has begun to flatten.
The Federal Reserve met for its final meeting of 2024, opting to reduce banking interest rates by 0.25 percent. This is the second time in a row the Fed decided to reduce interest rates, cutting their federal funds rate from 4.75-5 percent to 4.50-4.75 percent.
“The Fed has been assigned two goals for monetary policy—maximum employment and stable prices,” Federal Reserve chair Jerome Powell said during a press conference. “We remain committed to supporting maximum employment, bringing inflation sustainably to our 2 percent goal, and keeping longer-term inflation expectations well anchored.”
Chair Powell said that steady economic growth in the last quarter drove the Fed’s decision, with unemployment rates remaining low and consumer spending holding steady.
As the Lord Leads, Pray with Us…
- For Chair Powell and members of the Federal Reserve as they assess the state of inflation and the nation’s economy.
- For wisdom for the president and his economic advisors as they finish out the current term.
Sources: Axios, VOA News
