The Federal Reserve is set to announce its latest decision on interest rates this Thursday, marking an important move for borrowing costs just two days after President-Elect Donald Trump’s victory.

In September, the Fed lowered its benchmark interest rate by half a percentage point, easing its long-standing stance against inflation and providing relief to borrowers facing elevated costs.

The Federal Open Market Committee (FOMC), the Fed’s policymaking body, has projected additional rate cuts in the near future.

According to projections from the Federal Open Market Committee (FOMC), interest rates are expected to decrease by another half percentage point by the close of 2024, bringing them down from the current range of 4.75% to 5%. Looking ahead to 2025, the FOMC anticipates an additional one-percentage-point drop over the year.

Market sentiment, as reflected by the CME FedWatch Tool, suggests that the central bank is likely to reduce rates by a quarter of a percentage point at its meeting on Thursday.