Powell signals Fed ready to cut rates next year

Matthew CranstonUnited States correspondent

Updated Dec 14, 2023 – 11.20am, first published at 6.16am

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Washington | The Federal Reserve gave its clearest signal yet that its aggressive interest rate increasing campaign is finished by forecasting a series of rate cuts next year as inflation falls further.

The US central bank decided on Wednesday (Thursday AEDT) to keep its key interest rate unchanged at 5.25-5.5 per cent for a third straight time. Policymakers pencilled in no further interest rate rises in their projections for the first time since March 2021.

Matthew Cranston is the United States correspondent, based in Washington. He was previously the Economics correspondent and Property editor.