The US Federal Reserve delivered a 25 basis point (bps) rate cut during its December 16-18 monetary policy meeting, in line with market expectations. This decision, marking the last policy move under the Biden administration, brings the federal funds rate to a target range of 4.25-4.5 percent. Alongside the rate cut, the Fed unveiled a revised dot plot for future rate projections, signaling a more conservative path for monetary easing. The new projections reflect a shift from the September outlook, as policymakers grapple with sticky inflation, robust growth, and labor market resilience.