The Federal Reserve on Wednesday slashed its key lending rate by a quarter percentage point for the final time this year — but signaled the pace of cuts will slow in the year ahead as the central bank moves to keep a lid on inflation. The widely expected quarter-point cut reduced the Federal Reserve’s target rate to between 4.25% and 4.5%.

New data from the Labor Department shows the consumer price index, a key inflation gauge, rose 0.3% in November. That will likely impact the Federal Reserve's final interest rate decision of 2024. CBS News MoneyWatch correspondent Kelly O'Grady has more.

The Federal Reserve today made its final interest rate decision of 2024, capping a year during which the central bank provided some financial relief to inflation-weary borrowers in September by ushering in its first rate reduction in four years.

The Federal Reserve's policymakers announced that they will cut the benchmark federal funds rate by a quarter point in December, marking the central bank's third straight cut.

WASHINGTON -- Below is the statement the Federal Reserve released Wednesday after its latest policy meeting ended:

U.S. consumer prices increased by the most in seven months in November, but that is unlikely to discourage the Federal Reserve from delivering a third consecutive interest rate cut next week against the backdrop of a cooling labor market and rental costs.

U.S. unit labor costs grew far less than initially thought in the third quarter, pointing to a still favorable inflation outlook even though price increases have not moderated much in recent months. T

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Federal government shutdowns can be disruptive, with thousands of workers furloughed and most of them not getting paid on time. Taxpayers won’t get calls returned, there may be longer lines at airports during one of the busiest travel weeks of the year and many national parks will close.

During a shutdown, most government workers are furloughed, though many are required to report to work if their job is considered essential. In both cases, employees receive back pay when the shutdown ends, but new paychecks aren’t generated if a spending bill isn’t signed into law.

Some workers would be forced to report to work, while others would be furloughed. A government shutdown would have significant consequences for more than two million federal employees. Some would be forced to report to work and the rest would be furloughed. None would be paid during the shutdown.

If Congress fails to pass the continuing resolution to fund the government by Saturday, millions of federal workers could head into the holidays without paychecks. They could be furloughed or be asked to work without pay.