The US Federal Reserve expects only two interest rate cuts of 0.25 percentage points in 2025, not four as projected in September. This resulted in a sharp decline in the stock market on Wall Street.
The announcement came as the Federal Reserve announced another 0.25 percentage point interest rate cut on Wednesday, marking the third rate cut in three months by Fed Chairman Jerome Powell.
A continued high level of inflation is the reason for the belief in fewer cuts in 2025. The announcement comes as a disappointment for loan customers who had hoped for lower interest expenses.