Federal Reserve Discount Rate Meetings: November 18, December 9, and December 18, 2024
Introduction
The Federal Reserve (FRB) released the minutes of its discount rate meetings held on November 18, December 9, and December 18, 2024. These meetings were held to discuss the path of the discount rate, a key interest rate that the FRB lends to commercial banks and other financial institutions.
November 18 Meeting
- The FRB decided to leave the discount rate unchanged at 3.5%.
- Members expressed concern about the slowing economic growth and rising unemployment rate.
- However, they also noted that inflation was still above the FRB’s target of 2%.
- The FRB indicated that it would continue to monitor economic conditions and that it was prepared to adjust the discount rate further if necessary.
December 9 Meeting
- The FRB decided to cut the discount rate by 25 basis points to 3.25%.
- Members agreed that the economy was weakening and that the risk of recession had increased.
- They also believed that the reduction in the discount rate would help to stimulate economic growth.
- The FRB indicated that it was likely to cut the discount rate further in the coming months.
December 18 Meeting
- The FRB decided to cut the discount rate by another 50 basis points to 2.75%.
- Members expressed growing concern about the economy and believed that further monetary stimulus was necessary.
- The FRB indicated that it would continue to monitor economic conditions and that it was prepared to cut the discount rate further if necessary.
Conclusion
The FRB’s decision to cut the discount rate several times in late 2024 was a significant step taken to try to stimulate economic growth. The FRB’s actions were in response to the weakening economy and rising unemployment rate. The FRB indicated that it would continue to monitor economic conditions and that it was prepared to take further action if necessary.
Minutes of the Board’s discount rate meetings on November 18, December 9, and December 18, 2024
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