Economy

Fed Signals Rate Cuts

Published on December 16, 2025

In a significant policy shift, the Federal Reserve has signaled that interest rate cuts may be on the horizon for 2026. This comes as recent economic data shows inflation cooling faster than anticipated, nearing the Fed's 2% target.

Inflation Data

The latest CPI report indicates a steady decline in consumer prices across key sectors, including housing and energy. This gives the central bank the breathing room needed to ease monetary policy without reigniting inflationary pressures.

Market Impact

Markets reacted positively to the news, with bond yields dropping and equities rallying. Lower rates are expected to stimulate borrowing and investment, providing a further boost to the economic expansion.