Final Fed Rate Cut and Basis Points Market Update for 2024
Georgina Walleshauser
December 20, 2024
As widely anticipated, the Federal Reserve cut interest rates by 25 bps on Wednesday, lowering the Fed Funds target range to 4.25 – 4.50%. The projections released for 2025 indicate only two additional rate cuts in 2025. This is lower than the projections released in September which had indicated four rate cuts in 2025. As a result, treasury rates in the 1-30 year range increased ~2-5 bps intraday on Wednesday. Conversely, very short-term rates fell slightly by 1-2 bps