But the committee’ssummary of economic projectionspredicted rates to fall by just a half percent in 2025.
After its September meeting, the committee had penciled in a full percentage point reduction for next year.
The Fed began raising interest rates in the spring of 2022 in an effort to combat soaring inflation.
High inflation means you pay more for everything, including food and housing.
High interest rates make it harder to afford loans or credit.
Determining monetary policy is a fragile balancing act that requires considering inflation and the labor market.
Since September, inflation rates have ticked up slightly and further from the central bank’s 2% goal.
