Fed meeting live updates: The Fed cuts interest rates by a quarter point, bringing them down to just two points for 2025

The Fed is expected to cut interest rates again. What comes next is the biggest question.

There’s a phrase we Federal Reserve reporters use so often when describing Fed meetings that it might as well be a central bank cliché at this point: What matters most isn’t today’s rate announcement; but what the Fed announces next.

This is perhaps the most accurate way to describe the Federal Reserve’s final interest rate decision of the year (released today at 2:00 p.m. ET).

Fed officials already are They are widely expected to cut interest rates for a third time at their December meeting. Most economists and investors expect this because Fed officials made no move to scale back those expectations ahead of today’s rate hike, even after recent data showed inflation was stubborn and the labor market was stable.

What is missing, however, is evidence of a unified consensus about what the future might hold. Here are the key areas to watch at the final Fed meeting of the year:

Could the Fed hint that it plans to forego some rate cuts? Powell said the data would not force officials to make hasty rate cuts. Officials are expected to update their quarterly Summary of Economic Projections (SEP), which shows where they think borrowing costs could go over the next three years. If Fed officials forecast fewer than four rate cuts in 2025 (which they estimated back in September), it could be a signal that Fed officials believe they need to keep interest rates unchanged at multiple meetings – namely at a far slower pace than the last few months.

Will Fed officials emphasize that their outlook is even more uncertain? Fed officials are likely to be even more cautious than usual with the guidance they provide. There is a lot of uncertainty about what inflation and the economy might look like next year. President-elect Donald Trump’s proposals to raise tariffs on U.S. imports and cut taxes could lead to higher inflation, economists say. However, Powell will continue to emphasize that it is still too early for the Fed to change course.

Get ready for the Fed’s December meeting

The Fed is ready to cut interest rates again. Here’s what you should see.

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