Federal Reserve Chairman Jerome Powell speaks during a news conference. Photo by Anna ... [ ] Moneymaker/Getty Images.

The Federal Reserve cut interest rates by 0.25% on December 18 but an interest rate cut is unlikely when the Fed issues its next policy decision on January 29. Elevated levels of consumer inflation combined with the latest Federal Open Market Committee member forecasts of future interest rates imply a meeting without an interest rate policy change is unlikely to surprise market mavens and economists. However, the pace and timing of Fed rate cuts beyond January are less clear. Multiple interest rate cuts are likely in 2025—and perhaps more cuts than the latest FOMC projections suggest.

On December 18, the Federal Reserve cut the federal funds rate by 0.25%, targeting a range between 4.25% and 4.50%, which was widely expected. A similar rate cut at the next Fed meeting on January 29 is unlikely.

With elevated U.S. consumer inflation rates and still low unemployment rates, the Fed is not under pressure to cut interest rates urgently. Plus, the December 2024 Fed statement was accompanied by FOMC projections that reflected only two likely 0.25% rate cuts in 2025. The........

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