Former Cleveland Fed President: Rate cuts will be fewer next year

Odaily Planet Daily News: Former Cleveland Fed Chairman Mester said that the pace of interest rate cuts by the Federal Reserve next year will be affected by fiscal policy, and the number may not be as many as the 25 basis points assumed or expected in September. Mester pointed out that the Fed's outlook will change with the fiscal plans of the incoming Republican government, and the market may have correctly predicted that there will be fewer than the previously expected four rate cuts. "Next year, the pace of rate cuts will be affected by fiscal policy," the economists surveyed by Reuters also expect a 25 basis point rate cut at the December 2024 meeting. This will bring the federal funds rate down to 3% to 3.25% by the end of 2025, slightly lower than the Fed's median "dot plot" forecast. (Gold Ten)