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Fed Governor Bowman says December interest rate cut should be the last

  • The US Federal Reserve is expected to cut interest rates at a policy meeting this week, following a previous quarter-point cut in December 2024, reducing the key lending rate to between 4.25 and 4.50 percent despite inflation concerns.
  • Futures traders predict an 80 percent chance that the Fed will implement no more than two quarter-point cuts in 2025, a decrease from earlier forecasts of four cuts.
  • Fed Governor Michelle Bowman stated that the December rate cut should be the last for now, citing ongoing inflation risks and a strong labor market as reasons for caution.
  • Other Fed officials, including Kansas City Fed President Jeff Schmid, echoed Bowman's sentiments, emphasizing a gradual approach to future policy changes in response to economic data.
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  • 67% of the sources lean Left
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