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Stocks Plunge as Fed Forecasts Fewer Rate Cuts Next Year

^{Published on 2024-12-18 20:21:08 - The New York Times}
 

• The Federal Reserve cut rates for a third time this year, but investors shuddered at revised forecasts suggesting only two cuts in 2025.

The article from The New York Times, published on December 18, 2024, discusses the stock market's reaction to the Federal Reserve's latest signals on interest rates. The Fed has indicated a potential rate cut in the near future, which has led to a surge in stock prices as investors anticipate cheaper borrowing costs and a boost to economic growth. Analysts are forecasting that this dovish stance could lead to a more favorable environment for equities, with expectations of increased consumer spending and business investments. However, there are concerns about inflation reaccelerating if rates are cut too aggressively. The article also touches on the mixed reactions from market experts, with some cautioning that the market might be overly optimistic, while others believe the Fed's move is a necessary response to cooling economic indicators.

Read the Full The New York Times Article at:
[ https://www.nytimes.com/2024/12/18/business/stock-market-fed-rate-cut-forecast.html ]

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