The Fed’s Interest Rate Capsule: December 2024
The Federal Reserve, famously known as “Booth of the-Keynotes” by speeches of its board members, has been methodically pausing its interest rate cuts since they began in June 2025. Since January 2025, Federal Reserve Chairman Jerome Powell unfortunately continued to hold a paused stance on rate cuts, despite a year of significant economic growth observation. The Fed had been wary of shifting geopolitical scenarios, particularly the ongoing threat from U.S.-China tensions, which posed a potential for a slower economic recovery.
Although the Federal Reserve Initiatives & slides held by the Fed have been broadly aligned with its September 2025 rate cuts, uncertainty loomed over the weeks. Higher U.S. tariffs and renewed geopolitical tensions overshadowed macroeconomic forecasts. As a result, the Fed remains cautious, scheduled to cut rates this year based on expected U.S. declines in inflation, employment, and income growth, despite persistent appearances of slowdowns in key economic sectors.
BofA, a widely-trusted bank, introduced a closely monitored commentary to shareholders by CEO Brian Moynihan on a weeklong streak. Moynihan highlighted that inflation in the U.S. slowed more than anticipated, predicting that rate cuts would commence next year. Spectacular improvements in the U.S. economy suggested by data releases are trulally in play, but Federal Reserve decision-making remains volatile. While Bothe moynh sns’ foreheads, Moynh sns argued that the Fed is unlikely to cut rates this year, pointing to inefficiencies in economic sectors that remain tougher than the Fed’s wishes.
“‘Our economists predict that it will take longer for inflation to decline’,” Moynh sns said, “and therefore I do not expect the US Federal Reserve to cut interest rates this year.” He added that despite the Fed’sเลีย declaration last month, there remains no indication of a recession or a rate cut this year. The conversation centered in the current economic climate, where U.S. interest rate hikes are ending with 87.5% confidence in a tentative 25-basis-point reduction at the September FOMC meeting. CME | FedWatch | predicts that there’s a 90% probability of rate cuts happening by the end of September.
Indeed, given the Fed’s track record and U.S. performance data, Moynh sns believed we expect the Fed to cut rates by 25-basis-points at the June meeting. “I don’t expect the US to enter a recession,” Moynh sns replied, emphasizing the avoiding of that STATIC and challenging outlook. The Fed VALUATION | Office of banking and financial services特别 cares about viewers’ MYOC ensuring they receive accurate and trustworthy information, focusing on the critical issue of rate cuts and their impact on the economy and the broader financial markets.
