US Fed expected to combine interest rate cut with hawkish 2025 outlook

The US Federal Reserve is expected to lower borrowing costs on Wednesday in what some observers are calling a “hawkish cut” set to be delivered alongside policymakers’ updated interest rate outlooks and economic forecasts covering the first months of the incoming Trump administration.

The anticipated quarter-percentage-point move would lower the US central bank’s benchmark policy rate to the 4.25 per cent to 4.50pc range, a full percentage point below where it stood in September when it...