Make a difference in our non-profit newsroom... and help Marketplace meet our year-end goal! Donate Today 💙

Fed cuts rates by quarter percentage point — and rips up playbook for next year

Dec 19, 2024
The December rate cut was expected. But the Fed also reduced the number of expected rate cuts for 2025.
In September, Federal Reserve officials penciled in four interest rate cuts for 2025; now, they're only penciling in two.
Alex Wong/Getty Images

Fed reduces key rate by a quarter-point, envisions fewer cuts in 2025

Dec 18, 2024
“We’re closer to the neutral rate, which is another reason to be cautious about further moves," said Fed Chair Jerome Powell.
Andrew Caballero-Reynolds/Getty Images

Will new tariffs affect monetary policy? For now, it's wait-and-see

Dec 9, 2024
Carola Binder, an economist at the University of Texas at Austin, explains why tariffs might cause prices to rise, but they doesn't necessarily mean the Fed will get involved right off the bat.
Imported cars parked at the Port of Los Angeles.
Mario Tama/Getty Images

Inflation expectations are calm, but some expect that to change

Nov 20, 2024
The Federal Reserve may take note of whether businesses anticipate having to pay higher wages or raise prices under the next administration.
Consumers want prices to fall back to pre-pandemic levels, said Chris Jackson, head of public polling at Ipsos.
Michael M. Santiago/Getty Images

What a second Trump term would mean for the central bank

Nov 8, 2024
On Thursday, Fed Chair Jerome Powell wouldn’t rule out an interest rate hike next year, though that's not the plan at this point.
At Thursday's press conference, Federal Reserve Chair Jerome Powell wouldn’t rule out an interest rate hike next year.
Kent Nishimura/Getty Images

The Fed's about to get its preferred measure of inflation. Here's what it could mean.

Oct 30, 2024
The PCE index could come in at the central bank's much-vaunted target of 2% inflation.
The PCE may have dipped to or close to the Federal Reserve's 2% inflation goal, thanks in part to falling gas prices.
Brandon Bell/Getty Images

For public good, not for profit.

Look for predictability in the Fed's interest rate decision next week

Oct 29, 2024
While there's a lot of new economic data coming out between now and then, it will probably be relevant for later Fed meetings.
The Fed under Chair Jerome Powell, above, has a pattern: Set expectations and follow through.
Anna Moneymaker/Getty Images

In a 2nd Trump term, Fed independence would go “out the window,” economist says

Oct 28, 2024
Kai Ryssdal explores what would happen to the global economy if the Federal Reserve lost its autonomy.
Fed Chair Jerome Powell says the process for making interest rate decisions “is always the same.” At meetings, FOMC members ask, “What's the right thing to do for the people we serve?' … It's never about anything else."
Kevin Dietsch/Getty Images

As focus shifts from inflation to employment, the Fed’s job is still tricky 

Oct 23, 2024
The September rate cut raised hopes for a sturdy labor market into next year and beyond. The effect on jobs, though, may take time.
The labor market has shown strength and fragility this year. Potentially, lower interest rates could be good for business investment and hiring.
Anna Rose Layden/Getty Images