Fed Cuts Rates By Quarter-Point, Still No Money Magic Wand Found
KEY POINTS
- •On December 11, 2024, the Federal Reserve cut interest rates by a quarter-point, marking its third rate reduction this year.
- •Chair Jerome Powell addressed the Fed’s uncommon 3-way split in votes and emphasized respectful debate alongside strong views about inflation and labor.
- •Stocks responded positively with the S&P 500 rising 0.4% and the Dow surging 300 points as the Fed forecast a moderate 2.3% GDP growth in 2026.
On December 11, 2024, the Federal Reserve obediently cut interest rates by a thrilling quarter-point — the third dose of relief this year — sparking a polite yet fierce 3-vote protest led by Governor Stephen Miran (who wanted a big slash), Austan Goolsbee, and Jeffrey Schmid (who preferred to sit tight). Chair Jerome Powell, who’s been the wise monetary Gandalf for 14 years, described their fiery debates as 'respectful' while promising AI-fueled growth and resilient consumer spending will save the day. Investors cheered as the S&P 500 sprouted 0.4% and the Dow danced up 300 points, probably because mortgages, loans, and credit card pain get slightly less painful — for now. Meanwhile, labor markets, inflation puzzles, and delayed government data reports turned 2026 monetary policy into a badly scripted mystery planned to have only one more cut. It’s like a financial soap opera, but with more Excel and less popcorn.
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Fed cuts rates by quarter-point amid polite dissent, AI hopes, and data ghosts from the shutdown. It’s the financial glow-up your credit cards didn’t ask for.
The Fed’s decision is like a group project where half want to do all the work, half just want a passing grade, and Jerome Powell tries to mediate with a smile.
AI’s stepping in to save the economy, but three Fed members are still on hold—guess even robots can’t fix clashing opinions.
Source: Businessinsider | Published: 12/10/2025 | Author: Allie Kelly,Madison Hoff,Max Adams,Jennifer Sor,Samuel O'Brient,Will Martin
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