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The federal reserve announced a third rate cut today, but also cautioned it expects fewer cuts in 2025. Fed slashes interest rates by a half point, an aggressive start to its first easing campaign in four years The federal reserve on wednesday announced its decision on interest rates.

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The federal reserve cut interest rates by a quarter point, its third reduction this year, but suggested only two more reductions next year as inflation lingers. Many types of consumer loans are impacted when the fed trims its overnight lending rate.