Fed’s Focus Has Returned Firmly to Inflation

Policymakers don’t expect to reach their 2% inflation goal until 2027, so “from here on out, it is going to be much harder to get rate cuts without much further improvement on inflation.”

By Craig Torres | December 19, 2024 at 03:28 PM

Federal Reserve officials capped 2024 with a third-straight interest rate cut and a strong signal that inflation concerns are back in the fore. Chair Jerome Powell put it plainly: The central bank’s year-end inflation projection has “kind of fallen apart.” Officials now see it taking much longer for inflation to reach the Fed’s 2 percent target, which they have missed for nearly four years. As a result, they dialed back expectations for rate cuts next year, and Powell made clear that any adjustments will hinge on further progress in cooling price increases.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
Educational webcasts, white papers, and ebooks from industry thought leaders
Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

NOT FOR REPRINT

News

1 Another Pension Plan Risk-Transfer Lawsuit: Lumber Firm Sued over Its $1.5 Billion Transfer to Athene Annuity

2 Fed’s Focus Has Returned Firmly to Inflation

3 Fed Lowers Interest Rates by a Quarter Point

4 Fabricating a Treasury Function from Scratch to Support an $18 Billion Business

5 U.S.–Euro Rates Gap Is Set to Widen Again

Insurance
Complex Claims & Litigation Forum 2025
February 24, 2025 - Las Vegas

This conference aims to help insurers and litigators better manage complex claims and litigation.
More Information
GlobeSt. Multifamily Spring 2025
April 01, 2025 - New York

Join the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!
More Information
GlobeSt. Net Lease Spring 2025
April 01, 2025 - New York

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.
More Information

Fed Lowers Interest Rates by a Quarter Point

By Amara Omeokwe | December 18, 2024

However, officials reduced their expected number of rate cuts for next year from four to two.

Fed Lowers Interest Rates by a Quarter Point

U.S.–Euro Rates Gap Is Set to Widen Again

By Catarina Saraiva | December 16, 2024

In his first term, Trump bashed the Fed for allowing higher interest rates in the U.S. vs. Europe to drive up the dollar and hurt exports. Next year will likely bring more of the same, as the U.S. economy remains considerably stronger, meaning rates here will likely fall more slowly than in the Eurozone.

U.S.–Euro Rates Gap Is Set to Widen Again

Tariff Inflation Will Likely Be Transitory

By Catarina Saraiva | December 13, 2024

Nevertheless, the Fed may feel compelled to raise interest rates as soon as the first signs of a tariff-led bump in inflation emerge.

Tariff Inflation Will Likely Be Transitory

Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
Exclusive discounts on ALM and Treasury & Risk events.
Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now

Instant Insights /