Federal Reserve leaders are unified in their resolve to quash the worst bout of inflation in four decades. They just no longer agree on how high to keep U.S. interest rates to achieve their goal.

The December 2024 economic projections from the central bank show significant changes from the September figures. They indicate rising inflation and potential impact.

An inflation gauge that is closely watched by the Federal Reserve barely rose last month in a sign that price pressures cooled after two months of sharp gains

The Federal Reserve today made its final interest rate decision of 2024, capping a year during which the central bank provided some financial relief to inflation-weary borrowers in September by ushering in its first rate reduction in four years.

The Personal Consumption Expenditures index climbed by 0.1% in November on a month-over-month basis, the Bureau of Economic Analysis said in a statement Friday.

More importantly, inflation is also proving stubborn. Some argue that the Fed should be willing to tolerate (even if only implicitly, rather than explicitly) inflation being a bit higher for a bit longer than it theoretically should. Mohamed A. El-Erian over on Bloomberg Opinion explains this “3% inflation target” view here.

The Fed’s 19 policymakers projected that they will cut their benchmark rate by a quarter-point just twice in 2025, down from their estimate in September of four rate cuts.

The Federal Reserve’s third interest rate cut of the year will likely have consequences for debt, savings, auto loans, mortgages and other forms of borrowing by consumers and

Inflation just hit a five-month high in November and asset prices are smashing records. The Federal Reserve has been communicating its ambition to stamp out inflation for over two years and yet it’s about to cut interest rates as prices continue to move in the wrong direction.

The latest reading of the Federal Reserve's preferred inflation gauge showed price increases fell month over month in November but still remained sticky as the central bank fights to bring inflation back down to its 2% target.

The projections are a snapshot of individual committee members' best guesses on the future of unemployment, inflation and rate cuts. Economists expect that the average prediction will be three rate cuts in 2025, fewer than were expected when they last published their expectations in September.

The Federal Reserve on Wednesday moved to lower its benchmark rate by 0.25 percentage points, but said it plans fewer cuts in 2025.