• Dec 18, 2024

Fed's Powell Shocks Markets After Interest Rate Cut: 'It's A New Phase'

In a year marked by three consecutive rate cuts totaling 100 basis points, Federal Reserve Chair Jerome Powell said the Fed is shifting gears to a more cautious stance heading into 2025 as interest rates move tantalizingly close to a neutral environment for the economy. Following the latest 25-basis-point reduction announced Wednesday, the federal funds rate now sits at 4.25%-4.5%, the lowest since January 2023. “We’re significantly closer to neutral,” Powell said during the post-meeting press c

  • Dec 18, 2024

Oil Pares Gain as Fed’s Outlook Tempers US Inventory Optimism

(Bloomberg) -- Oil rose as strong US crude exports signaled firm global demand before paring gains after the Federal Reserve reduced the number of rate cuts it expects to make next year.Most Read from BloombergNYPD Car Chases Are Becoming More Frequent — and More DangerousWest Texas Intermediate advanced 0.7% to settle below $71 a barrel, while Brent edged higher to settle above $73. WTI’s gain shrank after the session as the Federal Reserve’s outlook for 2025 boosted the dollar, making commodit

  • Dec 18, 2024

US rate futures price in Fed on hold in January, less than two cuts in 2025

NEW YORK (Reuters) -Futures on the federal funds rate, which measure the cost of unsecured overnight loans between banks, priced in on Wednesday that the Federal Reserve will hold the overnight benchmark rate steady in January, after it lowered rates by 25 basis points at the end of its two-day meeting. Rate futures also factored in about 33 bps in cuts in 2025, down from 49 bps immediately after the Fed statement, LSEG calculations showed. The Fed on Wednesday also released new estimates on rate forecasts, also known as the "dot plot", which called for two quarter-point rate cuts next year.