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Fed to Cut Rates Next Week, Bringing an End to First Phase of Easing
Second chapter in 2025 will feature more caution and fewer promises from Powell and his colleagues. The Federal Reserve is set to cut its benchmark interest rate by a quarter-percentage point next week, staying on the path it has laid out to slowly bring rates down even as the economic landscape shifts beneath its feet.Economists who think the Fed will cut said the move fulfills the quick initial reduction in rates signaled in September with cuts at three straight meetings. The move would leave the Fed's benchmark rate in a range of 4.25%-4.5%, a full percentage point drop from the peak in early September."The December FOMC meeting will mark the end of the first phase of the Fed's rate cycle," said Krishna Guha, vice chairman of Evercore ISI.Powell will introduce the next phase at his press conference by emphasizing uncertainty, "making it clear that -while the Fed continues to be oriented towards moving rates carefully lower... it is now entering a different and more cautious phase o
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