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U.S. Stocks Hit Record Highs After Fed’s Quarter-Point Rate Cut

S&P forecasts two interest rate cuts by the U.S. Federal Reserve by year-end 2025, signaling potential easing despite slower Fed projections.

Summary

S&P expects the U.S. Federal Reserve to implement two 25-basis-point interest rate cuts before the end of 2025, followed by a 50-basis-point cut in 2026. The market remains focused on Jerome Powell's speech for further insights on future monetary policy actions as expectations lean towards rate reductions.

Terms & Concepts
  • Rate Cut: A reduction in the interest rate set by a central bank to stimulate economic activity by making borrowing cheaper.
  • Monetary Policy: The process by which a central bank controls the supply of money, often through adjustments in interest rates, to achieve economic objectives.