Federal Reserve chair Jerome Powell. Photo: Getty
The US Federal Reserve cut interest rates yesterday in another divided vote, but signalled it will likely pause further reductions in borrowing costs as officials look for clearer signals about the direction of the job market and inflation that “remains somewhat elevated”.
New projections issued after the US central bank’s two-day meeting showed the median policymaker sees just one quarter-percentage-point cut in 2026, the same outlook as in September, with inflation expected to slow to around 2.4pc by the end of next year even as economic growth accelerates to an above-trend 2.3pc and the unemployment rate remains at a moderate 4.4pc.
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