Federal Reserve Poised for Third Rate Cut of 2024 as Economic Projections Shift

The Fed is expected to announce a 0.25% rate cut, with signals of slower easing in 2025 amid robust economic data and policy uncertainties.

The Federal Reserve is widely expected to announce a 0.25% interest rate cut on Wednesday, marking its third reduction this year.
Investors are closely watching the Fed's updated economic projections, which may indicate fewer rate cuts in 2025 compared to prior forecasts.
Chair Jerome Powell is anticipated to deliver a cautious outlook, emphasizing data dependency and signaling a slower pace of rate easing next year.
U.S. economic resilience, including stronger-than-expected retail sales and persistent inflation, has tempered expectations for aggressive monetary easing.
Market reactions remain uncertain, with analysts predicting potential volatility depending on Powell's messaging and the updated dot plot projections.