Having delivered a percentage point of interest-rate cuts in the closing months of last year, Federal Reserve officials are entering 2025 with open minds. Policy has been “recalibrated” for the curren

Two top Federal Reserve officials on Thursday questioned the need for many more interest rate cuts. Fed Governor Michelle Bowman and Kansas City Fed President Jeff Schmid both said the 100 basis points in rate cuts since September has brought the Fed’s benchmark rate down to “neutral,” where it neither dampens or boosts demand.

Federal Reserve officials at their meeting Dec. 17-18 expected to dial back the pace of interest rate cuts this year in the face of persistently elevated inflation and the threat of widespread tariffs and other potential policy changes.