Fed Expected to Cut Rates Further Amid Cooling Economy
Update: 2025-12-17
Description
Wall Streets main indexes dipped earlier this week due to healthcare and energy stock losses. Investors are closely watching new economic data to predict the Federal Reserves monetary policy next year. The Labor Department reported 64,000 new jobs in November, but the unemployment rate rose to 4.6%. This increase, along with economic uncertainty from Trumps trade policies, could lead to more interest rate cuts next year, as the Federal Reserve may view jobs data with skepticism due to a recent government shutdown. Additionally, a survey showed U.S. business activity growth hit a six-month low in December, and retail sales remained unchanged in October, indicating a cooling economy and adding pressure on the Federal Reserve to stimulate growth.
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