The Federal Reserve agreed to cut interest rates by another quarter point on Wednesday but signaled officials may rethink how it will cut rates moving forward, The Wall Street Journal reports.
Eleven out of the 12 Fed voters agreed to make the quarter-point cut, which will lower the Fed’s benchmark federal-funds rate to a range between 4.25% and 4.5%, a two-year low.
While the Fed has cut rates at its previous two meetings, new projections released Wednesday show officials expect to be more conservative next year, with only two cuts planned for 2025 if the economy grows steadily and inflation declines. In September, officials had predicted four cuts for next year.
The Fed’s policy statement also alludes to a slower pace of cuts by saying “the extent and timing” of additional adjustments would depend on the outlook.
