First Fed Meeting After Election: Expect a Rate Cut, but What's in Store for 2025?

There are two more Federal Reserve meetings in 2024, but consider turning your gaze to 2025.

Knowing the Fed’s plans can help plot your course for the next 12 months.

The Federal Open Market Committee is meeting today, tomorrow, and again in December.

Most experts expect a quarter-percent cut at each meeting, but what about 2025?

“Going into next year is anybody’s guess.

At this point, they want to cut rates another percent next year.”

The Fed’s decision can affect how much it costs to borrow money, like mortgages and car loans.

Changing interest rates can also indirectly impact you.

How much will the Fed cut rates this week and in December?

Most experts expect the Fed to make another 25 bps cut in December.

Heym said the Fed is likely afraid that lowering rates too quickly could reignite inflation all over again.

“So they have to take a measured approach there.”

And that measured response comes from looking at a lot of data, includinginflationand jobs reports.

That could indicate the labor market is softening.

Both of these reports support another rate cut at this month’s Fed meeting, experts say.

Heym isn’t the only one who expects the Fed to stay the course.

Robert Fry of Robert Fry Economics predicts that the Fed will cut a quarter point tomorrow and in December.

But when exactly those cuts will come is another question.

“I no longer think they will cut at the first four meetings next year,” Fry said.

“I still think they’ll cut next year, but much more gradually.

They could cut every other meeting if inflation continues to come down.”

There are too many unpredictable factors at play, but overall, experts predict rates will fall in 2025.

The job market could also worsen, which in turn would spur the Fed to take a different approach.

The Fed is a reactionary body.

If they see the need to adjust their strategy, they will.

However, that doesn’t mean you’ve got the option to’t prepare for what lies ahead.

Even multiple cuts would take time before making a substantial impact.

That lag time provides plenty of opportunity to review your financial strategy.

Though the Fed’s cuts will impact your card’s rates, expect them to remain high.

Consider abalance transferto pay it down or otherdebt payoff strategies.

“Understand what your options are.

Feel comfortable in your decision.

Don’t make decisions out of fear.”