The Federal Reserve will announce a rate decision on Wednesday, Dec. 18. Economists are now expecting fewer cuts in 2025.

The Federal Reserve is expected to lower its policy rate by 25 basis points in the upcoming December meeting. Explore more details here.

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When the Fed last published its quarterly outlook in September, for instance, a solid majority on its monetary-policy committee projected that their most important inflation gauge would retreat to 2.2% next year.

Interest rates might not fall as far in 2025 as Wall Street expects. The news: Investors see more than a 90 percent chance the central bank will trim its main lending rate by a quarter-point on Wednesday,

Fed "can afford to be more cautious as it lowers rates." The conundrum will color the Fed's December meeting. It starts Tuesday and ends Wednesday when the Fed is expected to cut its current key federal funds rate to 4.

While the Federal Reserve is expected to cut its key interest rate next week, stubborn inflation could pressure the central bank to keep rate cuts few and far between next year.

Americans hoping for lower borrowing costs for homes, credit cards and cars may be disappointed after this week’s Federal Reserve meeting.

Analysts forecast a final interest rate reduction from the Federal Reserve this Wednesday, but the real focus is on whether the central bank will adjust its expectations for 2025. Inflation remains sticky,