After Likely Quarter-Point Rate Cut, Fed May Slow Pace of Drops if Inflation Lingers

by Paul Davidson
USA Today

After slashing its key interest rate by a hefty half percentage point in September, the Federal Reserve is expected to lower rates by a more measured quarter point Thursday and several times next year as inflation continues to ease.

But if the Fed veers from that steady pace, it likely would be to reduce rates less sharply to ensure inflation keeps falling, economists say.

That may defy some forecasters’ view that the central bank largely has won the battle against soaring prices and must bring down interest rates swiftly to achieve a “soft landing” that avoids a recession.

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