Scott Horsley

Well, policymakers are expected to lower their benchmark rate by a quarter percentage point this afternoon. That'd be the third rate cut since September. And it would leave interest rates a full percentage point lower than they were back in the summer.

No. Inflation has come down a lot in the last couple of years, but it's still higher than the Fed would like. And in fact, some of the progress we've been seeing on prices appears to have stalled in the last few months. Fed Governor Chris Waller gave a speech earlier this month where he talked about just how stubborn inflation has proven to be.

No. Inflation has come down a lot in the last couple of years, but it's still higher than the Fed would like. And in fact, some of the progress we've been seeing on prices appears to have stalled in the last few months. Fed Governor Chris Waller gave a speech earlier this month where he talked about just how stubborn inflation has proven to be.

No. Inflation has come down a lot in the last couple of years, but it's still higher than the Fed would like. And in fact, some of the progress we've been seeing on prices appears to have stalled in the last few months. Fed Governor Chris Waller gave a speech earlier this month where he talked about just how stubborn inflation has proven to be.

Waller insisted, though, he and his colleagues are not going to let inflation out of the octagon today. until prices are completely under control.

Waller insisted, though, he and his colleagues are not going to let inflation out of the octagon today. until prices are completely under control.

Waller insisted, though, he and his colleagues are not going to let inflation out of the octagon today. until prices are completely under control.

Well, it's a balancing act. High interest rates do help curb inflation, but they can also be a drag on the economy. So the Fed is trying to strike a balance here. Markets are betting the Fed is going to lower interest rates today, and then after that, maybe take a break and see how things play out.

Well, it's a balancing act. High interest rates do help curb inflation, but they can also be a drag on the economy. So the Fed is trying to strike a balance here. Markets are betting the Fed is going to lower interest rates today, and then after that, maybe take a break and see how things play out.

Well, it's a balancing act. High interest rates do help curb inflation, but they can also be a drag on the economy. So the Fed is trying to strike a balance here. Markets are betting the Fed is going to lower interest rates today, and then after that, maybe take a break and see how things play out.

Oftentimes, the Fed doesn't have that luxury when it's faced with a sudden collapse in the economy like the pandemic or the housing crisis. But we're not dealing with a crisis like that right now. The overall economy is still strong. The job market is holding up pretty well. So Fed Chairman Jerome Powell said he and his colleagues can afford to take their time.

Oftentimes, the Fed doesn't have that luxury when it's faced with a sudden collapse in the economy like the pandemic or the housing crisis. But we're not dealing with a crisis like that right now. The overall economy is still strong. The job market is holding up pretty well. So Fed Chairman Jerome Powell said he and his colleagues can afford to take their time.

Oftentimes, the Fed doesn't have that luxury when it's faced with a sudden collapse in the economy like the pandemic or the housing crisis. But we're not dealing with a crisis like that right now. The overall economy is still strong. The job market is holding up pretty well. So Fed Chairman Jerome Powell said he and his colleagues can afford to take their time.

One thing a lot of people will be watching this afternoon is the forecast that Fed policymakers offer about where they think interest rates are going to go next year. Back in September, they were projecting that rates would fall by another full percentage point in 2025. We'll see if they dial that back.

One thing a lot of people will be watching this afternoon is the forecast that Fed policymakers offer about where they think interest rates are going to go next year. Back in September, they were projecting that rates would fall by another full percentage point in 2025. We'll see if they dial that back.

One thing a lot of people will be watching this afternoon is the forecast that Fed policymakers offer about where they think interest rates are going to go next year. Back in September, they were projecting that rates would fall by another full percentage point in 2025. We'll see if they dial that back.

Carefully. Economists say some of the president-elect's policies, like tariffs and mass deportations, could actually make inflation worse. Powell has said it's too early to make any predictions about that. Keep in mind, Trump was often critical of Powell the last time he was in the White House. So Powell has tried hard not to provoke the incoming president.

Carefully. Economists say some of the president-elect's policies, like tariffs and mass deportations, could actually make inflation worse. Powell has said it's too early to make any predictions about that. Keep in mind, Trump was often critical of Powell the last time he was in the White House. So Powell has tried hard not to provoke the incoming president.

Carefully. Economists say some of the president-elect's policies, like tariffs and mass deportations, could actually make inflation worse. Powell has said it's too early to make any predictions about that. Keep in mind, Trump was often critical of Powell the last time he was in the White House. So Powell has tried hard not to provoke the incoming president.

But he's also insisted Trump doesn't have the authority to fire him. And when Trump was asked about that on Meet the Press, he appeared to accept that Powell's going to stick around for a while.