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Shares, dollar slammed after Fed walks back rate cut plans

Cecile Lefort
Cecile LefortMarkets reporter
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Financial markets are coming to grips with the possibility that global interest rates may not go much lower and advanced economies like the US and Australia will be prone to higher inflation in a world of punishing tariffs and trade conflicts.

The US Federal Reserve stunned investors on Wednesday (Thursday AEDT) after forecasting just two interest rate reductions in 2025 when Donald Trump will be sworn in as US president. It had projected four cuts just three months ago.

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Cecile Lefort is a markets reporter based in the Sydney newsroom. Email Cecile at cecile.lefort@afr.com
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    Original URL: https://www.afr.com/markets/currencies/fed-cuts-rates-sees-slower-pace-of-future-reductions-20241219-p5kzk0