
The recordings from a November Federal Reserve meeting suggest that inflation is cooling, strengthening the belief that federal rate cuts will happen gradually.
While the early November meeting didn’t reveal the Reserve’s plans, Wall Street still estimates that interest rates will be cut for a second straight month and for the third time this year.
In a speech last month in Dallas, Fed Reserve Chair Jerome Powell expressed that the economy’s not showing any signs that there has to be a “hurry” for further rate cuts.
Kathy Bostjancic, chief economist at Nationwide, predicts that the agency will cut its key rate by a quarter-point in December to approximately 4.3%. However, she also explained that there will likely be a pause on further cuts early next year because the Reserve wants to assess policy changes under the new presidency and the evolving economic landscape.
Fed officials will meet through December 17-18 to determine whether to cut interest rates again.