The Federal Reserve is expected to cut interest rates for a 3rd straight meeting despite a recent inflation pick-up and solid economy and job market.

Investors widely expect a third-in-a-row rate cut this week. Officials are ready to slow—or even stop—lowering rates after that.

Federal Reserve officials are likely to slow the pace of rate cuts in 2025, which would keep borrowing rates higher for longer.

The officials are set to reduce their benchmark rate, which affects many consumer and business loans, by a quarter-point to about 4.3% when their meeting ends Wednesday.

While Wall Street is already pricing in a 25-basis-point cut from the Federal Reserve at its December meeting this week, what could be on the docket for interest rates in 2025? Yahoo Finance Fed reporter Jennifer Schonberger joins the Morning Brief team to discuss whether the central bank could stick to its four rate cuts planned for next year,

When inflation was at its peak in 2022, the Fed raised interest rates to lower demand and limit price growth, and mortgage rates surged in response. The Fed pivoted to cutting interest rates earlier this fall, as data pointed to cooling inflation and a slower job market.

The Federal Reserve is set to take a more cautious approach, as inflation remains above its two percent target.

The Federal Reserve is likely to signal a slower future pace of easing when it meets later this week and then skip cutting interest rates in January, according to Goldman Sachs Group Inc. economists.