• The Federal Reserve cut interest rates by a quarter point Wednesday, but projected just two rate cuts in 2025, down from its original forecast for four.
• That sent markets into a tailspin, with the Dow falling more than 1,100 points, or 2%. The S&P 500 was 1.9% lower and the Nasdaq fell 2.5%.
• Inflation’s progress has stalled recently, but it is just above the central bank’s target of 2%. Meanwhile, economic growth remains robust and the job market is strong but cooling.
• That has created a dilemma for Fed officials, with some concerned inflation could heat up again if more cuts happen, while others worry putting rate cuts on hold could further weaken the labor market.
