Will The Fed Cut Rates More Slowly In 2025 Season. 18, 2024, the federal open market committee (fomc) cut the federal funds rate by 25 basis points (bps) to 4.25% to 4.5%, the third straight rate cut last year. New york (ap) — the federal reserve’s third interest rate cut of the year will likely have consequences for debt, savings, auto loans, mortgages and other forms of.

The federal reserve cut interest rates but signaled fewer cuts would come in 2025, due to the stronger economy and persistent inflation. The fed funds rate is important to savers, as banks and credit unions generally move their savings and cd rates in step with fed changes.