The Federal Reserve is expected to cut interest rates for the third time this year at its meeting on December 18, 2024.
This anticipated 0.25 percentage point reduction would lower the federal funds rate to a range of 4.25% to 4.5%.
The Fed has already made two rate cuts earlier this year, including a larger 0.5 percentage point cut in September followed by a 0.25 percentage point cut in November.
According to a recent survey conducted by the University of Chicago Booth School of Business, economists have revised their expectations for interest rate cuts in the coming year. The survey results suggest a more cautious outlook on rate cuts:
Economists anticipate fewer rate cuts than previously expected due to persistent inflation concerns.
The Fed is likely to maintain higher rates for a longer period to ensure inflation returns to its target.
The survey highlights the complex economic landscape the Federal Reserve faces, balancing inflation control with economic growth as it navigates its i…