The Federal Reserve appears to be heading to a more wary and “hedged posture” on the rate and level of further rate cuts due to the incoming Trump administration, according to Evercore. The shift in the central bank’s tone,

The Federal Reserve cut interest rates by 0.25% on November 7. More interest rate cuts are likely through the end of 2026.

The Federal Reserve's rate cuts won't directly lower home prices in 2025. But they could spur a chain reaction that leads to a drop in home prices.

Federal Reserve Chair Jerome Powell said Thursday that interest rates are still expected to decline further, but suggested they might not be that much lower over the next few months.

Fed watchers see a greater chance the central bank may skip a rate cut at its last meeting of the year in December.

October's Consumer Price Index (CPI), which measures changes in the cost of consumer goods and services, showed that annual inflation rose by 2.6%. That's not an alarmingly high rate of inflation. It's also only a modest uptick from September's CPI reading, which measured annual inflation at 2.4%.

Ongoing economic growth, a solid job market, and inflation that remains above its 2% target mean the Federal Reserve does not need to rush to lower interest rates, Fed Chair Jerome Powell said on Thursday in remarks that may point to borrowing costs remaining higher for longer for households and businesses alike.