The Federal Reserve cut interest rates by 0.25% on December 18, but an interest rate cut is unlikely when the Fed issues its next policy decision on January 29.

Gold extended gains on Monday after a softer-than-expected U.S. inflation reading revived hopes for further monetary policy easing by the Federal Reserve in the coming year. Spot gold gained 0.4% to $2,

More importantly, inflation is also proving stubborn. Some argue that the Fed should be willing to tolerate (even if only implicitly, rather than explicitly) inflation being a bit higher for a bit longer than it theoretically should. Mohamed A. El-Erian over on Bloomberg Opinion explains this “3% inflation target” view here.

The December 2024 economic projections from the central bank show significant changes from the September figures. They indicate rising inflation and potential impact.

Inflation just hit a five-month high in November and asset prices are smashing records. The Federal Reserve has been communicating its ambition to stamp out inflation for over two years and yet it’s about to cut interest rates as prices continue to move in the wrong direction.

Americans hoping for lower borrowing costs for homes, credit cards and cars may be disappointed after this week’s Federal Reserve meeting.

The Federal Reserve's policymakers announced that they will cut the benchmark federal funds rate by a quarter point in December, marking the central bank's third straight cut.

The U.S. dollar pulled back from a two-year high on Friday, but was heading for its third-straight week of gains, with data showing a slowdown in inflation two days after the Federal Reserve cut interest rates and indicated inflation was stubborn enough to scale back cuts in 2025.

Fed chair Jerome Powell says inflation and interest rates will be higher next year than previously thought. If anyone should know where inflation’s headed, it’s the Federal Reserve. Yet this week’s meeting underscored the opposite: Policymakers are less certain than ever and they don’t exactly know how to prevent prices from roaring back.

Federal Reserve Bank of Cleveland President Beth Hammack, in explaining her dissenting vote at this week’s central bank meeting, said interest rates should be held steady until there’s more progress in cooling inflation.