The Federal Reserve reduced interest rates by a quarter point on Wednesday, Dec. 10, marking the third consecutive cut this year. According to CNN , this decision brings the total reduction to 1.75 percentage points since the rate-cutting cycle began in September 2024.

Fed Chair Jerome Powell made it clear during his announcement that raising rates is not being considered at this time. Stock markets responded positively to the news, with the Dow Jones jumping 497 points or 1.05 percent. CNN reports that Powell emphasized the central bank is well positioned to wait and observe how the economy develops before making further decisions. The S&P 500 also gained 0.67 percent while the Nasdaq Composite rose 0.33 percent on Dec. 10.

Divided opinions among fed officials

The rate cut decisi

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