Fed cuts interest rates by a quarter point

The American Federal Reserve (Fed) announced on Wednesday that it had lowered its main rates for the third consecutive time, by 25 basis points, bringing them into a range between 4.25% and 4.50%, in line with market expectations. markets.

The Central Bank also took advantage of its last meeting of the year to revise its macroeconomic forecasts for 2025, expecting slightly higher growth than in September, now at 2.1%, with almost stable unemployment. It does not expect inflation to return to its target of 2% before the end of 2026.

End of cycle

The American Federal Reserve (Fed) is “getting very close” to the end of its cycle of rate cuts, said Wednesday the president of the institution, Jerome Powell, during a press conference, stressing that the Central Bank is seeking to determine the right level needed.

“We are getting very close to the neutral rate”, that is to say the interest rate having no effect, to support or slow it down, on the economy, estimated Mr. Powell.

“Very optimistic”

The President of the American Central Bank (Fed), Jerome Powell, said on Wednesday that he was “very optimistic” about the trajectory of the American economy, with a job market which is slowing but not weakening.

“We are in a very good situation,” insisted the official during the press conference which followed the Fed meeting, saying he expected “one more good year”.

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