US Federal Reserve expected to slow interest rate cuts as inflation pressures persist

Americans hoping to lower borrowing costs for homes, credit cards and cars are looking forward to a disappointing Federal Reserve meeting this week.

Federal Reserve policymakers are likely to recommend a smaller rate cut next year than previously expected.

Officials are preparing to cut the benchmark interest rate, which affects many consumer and business loans, by a quarter of a percentage point to around 4.3% when their meeting ends the day after tomorrow, Wednesday. According to Al Arabiya

At that level, the interest rate will be a full point lower than its highest level in four decades, which it reached in July 2023. Monetary policymakers had kept the main interest rate at its peak for more than a year in an attempt to curb inflation, before cutting it by half a point in September and a quarter point last month.