On December 18, 2024, the Federal Reserve announced a 0.25 percentage point reduction in the federal funds rate, setting the new target range at 4.25% to 4.5%

The FOMC reduced the federal funds rate by 25 basis points to 4.5%–4.75%, citing solid GDP growth, easing inflation, and resilient labor markets. Despite progress, core inflation at 2.7% remains elevated, and risks in commercial real estate and household debt warrant monitoring.