Watching Lawrence re the spending bill, government shutdown this weekend, raising the debt ceiling ...

[cliffside]

11. Fed Cuts Rates, but Projects Fewer Reductions Next Year

full article link

https://www.nytimes.com/2024/12/18/business/fed-meeting-interest-rates.html?unlocked_article_code=1.ik4.xmGQ.mNMOuxeJC7Vh&smid=url-share

".... The Fed’s forecasts make clear that central bankers are poised to slow rate cuts notably starting next year as stubborn inflation lingers — and Mr. Powell made it clear that the Fed wants to see further progress toward cooler inflation to cut interest rates at all.

Markets shuddered at that assessment, with the dollar soaring and stocks plummeting. The S&P 500 index fell nearly 3 percent, its worst tumble since August. The Dow Jones industrial average fell for a 10th-straight day, its longest losing streak since October 1974.

... But Fed officials are also operating in an environment of uncertainty: President-elect Donald J. Trump has been promising to impose tariffs on American trading partners, and those could push prices up and feed into inflation if they become reality.

Some Fed policymakers did count fiscal policy into their economic projections, which could have driven some of the increase in their inflation forecasts. But exactly how much the policies would affect inflation is uncertain..."