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Worries of a Fed policy mistake are growing amid a hot economy and sticky inflation

The Federal Reserve is expected to maintain its current interest rate range of 5.25% to 5.5% at its December 2024 meeting, continuing its hawkish stance to combat inflation which, despite cooling, remains above the Fed's 2% target. Investors and analysts are closely watching for any signals regarding potential rate cuts in 2024, with market expectations leaning towards a cut possibly in March, influenced by recent economic indicators showing a slowdown in inflation and a softening labor market. However, Fed Chair Jerome Powell has emphasized a cautious approach, suggesting that the Fed might not cut rates as soon as markets hope, focusing instead on ensuring inflation sustainably moves towards the 2% goal. This cautious outlook is reflected in the Fed's recent communications, which have not ruled out further rate hikes if inflation does not continue to decline as expected.

Read the Full Business Insider Article at:
[ https://www.businessinsider.com/fed-rate-cut-outlook-fomc-meeting-inflation-interest-rate-policy-2024-12 ]