Peak Square Ventures

Breaking news: Fed cuts rates by quarter point

The Federal Reserve cut its key interest rate by a quarter-percentage point Wednesday, as forecast, and lowered the number of reductions expected in 2025 to two - from four in September. The central bank reduced the benchmark target to between 4.25% and 4.5%. The rate influences a variety of consumer debt such as auto loans and mortgages. The bank also sees unemployment at 4.3% and inflation of 2.5% next year. Its projections come as consumer-price growth has begun to stick. All three major stock indexes turned lower after the decision.