Fed interest rate cut bets shift for January
thestreet.com••business
Key Points:
- The Federal Reserve's interest rate decisions in 2025 reflected a balancing act between controlling rising inflation and managing increasing unemployment, with rates cut three times by the end of the year, totaling a 0.75% reduction.
- Inflation rose from 2.3% in April to 3% in September before easing slightly, while unemployment increased from 4% in January to 4.6% in November, partly due to tariff impacts and corporate layoffs.
- Despite rate cuts in late 2025, the Fed signaled a cautious outlook for 2026, with forecasts indicating only one or two additional cuts, reflecting uncertainty over economic data and inflation trends.
- Market expectations for a January 2026 rate cut have diminished, with
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