U.S. interest rates are cut by another 0.25%p...4 → 2 cuts expected next year

The U.S. central bank, the Federal Reserve, cut its key interest rate again following September and November, and adjusted its forecast for the number of rate cuts next year from four to two, indicating a pace of rate cuts.

After the Federal Open Market Committee (FOMC) regular meeting, the Fed said it would adjust its key interest rate to 4.25% to 4.5%, 0.25 percentage points lower than before.

In addition, as the base rate at the end of next year is 3.9%, 0.5 percentage points higher than the previous September forecast of 3.4%, four cuts were expected next year, but the number is expected to be reduced to two as of September.

The Fed slightly raised U.S. economic growth to 2.1% next year, up from 2% in September, and forecast 2.5% for inflation at the end of next year, compared with a 2.1% forecast in September.

In fact, if the pace of rate cuts begins next year, there is a possibility of conflict between Fed Chairman Jerome Powell and Trump, who prefers low interest rates, the Wall Street Journal said.