News brief

Fed cuts key interest rate for third time this year. The Federal Reserve cut its key interest rate by a quarter-point, its third cut this year, but also signaled that it expects to reduce rates more slowly next year than previously envisioned, largely because of still-elevated inflation. The Fed’s policymakers projected that they will cut their benchmark rate by a quarter-point just twice in 2025, down from their previous estimate in September of four rate cuts. Their new quarterly projections suggest that consumers may not enjoy lower rates next year for mortgages, auto loans, credit cards, and other forms of borrowing.