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Economy

Fed interest rate cut bets shift for January

Fed interest rate cut bets shift for January Todd Campbell Mon, December 29, 2025 at 2:16 AM GMT+5:30 5 min read My Wall Street career kicked off nearly 30 years ago, and I've navigated the markets through, by my count, almost 225 Federal Reserve interest rate decisions. I learned long ago, through mentors, books, and real-world experience, that the friendlier the Fed, the better it is for investors. The Fed, which meets about every eight weeks to set interest rates, doesn't directly control how much banks charge borrowers, but its decisions do indirectly impact how much businesses and everyday Americans pay in interest on everything from credit cards to mortgages to factory floor and data center upgrades.

Fed interest rate cut bets shift for January

Credit: Yahoo

Key Highlights

  • Effective Federal Funds Rate (June-December 2025): December: 3.64%, according to the New York Federal Reserve.
  • November: 3.88% October: 4.09% September: 4.22% August: 4.33% July: 4.33% June: 4.33% Source: St.
  • Louis Federal Reserve.
  • The lower the Fed Funds Rate—the rate at which banks charge each other for overnight reserves—the lower Treasury yields, lending rates, and interest expenses, fueling economic activity and corporate profits.
  • The Fed's ability to make companies more (or less) profitable with its rate decisions makes its monetary policy incredibly important.
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Sources

  1. Fed interest rate cut bets shift for January

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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