Wall Street Braces for a More Cautious Federal Reserve in 2025

With investors panicked by the outlook, what does this mean for mortgages and savings accounts?
Wall Street Braces for a More Cautious Federal Reserve in 2025
Federal Reserve Chairman Jerome Powell prepares to deliver remarks in Washington, on Nov. 8, 2023. Chip Somodevilla/Getty Images
|Updated:
0:00

A more cautious and conservative Federal Reserve will likely influence Wall Street’s playbook for the new year.

At the December policy meeting of the Federal Open Market Committee (FOMC), Fed officials signaled to the financial markets that they would pursue a slower path of easing through 2025. Retail traders and institutional investors were unhappy, although market watchers widely anticipated a more methodical approach to normalizing interest rates amid renewed inflationary pressures.

Andrew Moran
Andrew Moran
Author
Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of "The War on Cash."