For the third time in a row, the Fed reduced its benchmark federal funds rate by 25 basis points on Dec. 18, 2024. The previous range of 4.50% to 4.75% was followed by a decline in the Fed's benchmark rate from 4.25% to 4.50%.
The December rate cut follows September and November's 50 basis point and 25 basis point rate cuts, respectively. The Fed had adapted reformed strategies to bolster the economy when the federal funds rate dropped by a whole percentage point.
