Fed hits pause on rate reductions after divisive decision to cut

 Federal Reserve chairman Jerome Powell says the central bank will pause its interest rate-cutting cycle for now to assess how three consecutive reductions support employment in the cooling job market, in a stance that could antagonise US President Donald Trump.

The Fed board’s rate-setting committee reduced the official rate range by a quarter of a percentage point, to 3.5 per cent to 3.75 per cent, on Wednesday (Thursday AEDT), the lowest it has been in nearly three years. And in a set of quarterly economic projections, Fed officials signalled they expect to lower rates just once next year.

Source: https://www.afr.com/world/north-america/federal-reserve-cuts-rates-in-divisive-decision-20251211-p5nmpl