The Federal Reserve closed out 2024 with one last 25-basis-point trim on Wednesday, alongside a less dovish signal for 2025 after signaling that it may only need to trim interest rates two times in 2025.
It’s not the sexiest topic, but the Fed’s policies impact all of us. Borrowing costs for individuals and businesses impact everything from buying a home to getting a loan to expand a company’s operations.
The Fed relies on inflation rates and job indicators to determine the direction of fund rates. However, there is one significant factor that will be the biggest influence on where rates go in 2025.
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