top of page

Stocks Crash After Fed Projects Fewer Rate Cuts


Graph of stock market crash and investor holding his head in his hand

On Wednesday, December 18, the Federal Reserve Bank cut its primary interest rate a quarter of a point. The benchmark lending rate range is now at 4.25% to 4.50%, a two-year low. This was the third rate reduction this year.That's good news. The bad news, as the markets saw it, was that the Federal Reserve Bank reduced the number of anticipated rate cuts in 2025 from 4 to 2. That sent the stock markets scrambling. The Dow Industrial Average dropped 1,100 (2%). The broader market indices, S&P 500 and NASDAQ, also fell 1.9% and 2.5%, respectively. The Federal Reserve Bank remains vigilant in keeping inflation at bay. Some investor believe President -elect Trump's threat of massive tariffs on goods coming from Mexico, Canada, and China could stoke inflation. CNN has a good summary of the Fed announcement.

Comments


CCHI Logo with Transparency

CRIMSON CARDINAL HEALTHCARE INTERMEDIARY

A DIVISION OF    CRIMSON CARDINAL REALTY LLC

6409 Fayetteville Road, Suite 120-181  Durham, NC 27713

(919) 213-1333

©2025 by Crimson Cardinal Realty LLC. All Rights Reserved.

2025-02 Original PNG.png
AHHC of NC logo
SCHCHA logo
bottom of page