On Wednesday, December 18, the Federal Reserve lowered interest rates by 25 basis points as expected, and demonstrated a &#34;hawkish rate cut&#34; tendency in the officials' rate opinions &#34;dot plot&#34; and economic forecasts, indicating that &#34;the pace of future rate cuts will slow,&#34; which largely aligns with Wall Street's consensus forecast.
The wording changes in the December meeting statement were not significant compared to the previous one, only adding the terms &#34;magnitude and timing&#34; when considering future rate adjustments. However, this is the second time this year that a voting member of the FOMC has opposed a rate cut.
Specifically, Cleveland Fed President Beth Hammack opposed a rate cut in December, while in September, Fed Governor Michelle Bowman opposed a significant rate cut, becoming the first governor to cast a dissenting vote since 2005. Bowman supported further routine rate cuts in December.
<h2>The full statement translation is as follows:</h2>
The black text is the same as the statement from the November 2024 FOMC meeting, with the black text in parentheses providing additional explanations from Wall Street, the red text is the new content for December 2024, and the blue text in parentheses indicates the wording deleted from the November statement (please indicate the source when reprinting):
<blockquote>
Recent indicators suggest that economic activity continues to expand steadily. Since earlier this year, labor market conditions have generally loosened, the unemployment rate has risen somewhat but remains low. Inflation has made progress toward the Committee's (note: the Committee here refers to the FOMC) 2% target, but remains elevated.
The Committee seeks to achieve maximum employment and a 2% inflation rate over the long term. The Committee believes that the risks to achieving the employment and inflation goals are broadly balanced. Economic prospects are uncertain, and the Committee is attentive to the two-sided risks facing its dual mandate.
To support its objectives, the Committee decided to lower the target range for the federal funds rate by 0.25 percentage points to 4.25% to 4.50% (4.50% to 4.75%). In considering the magnitude and timing of future adjustments to the federal funds rate target range, the Committee will carefully assess incoming data, evolving outlooks, and risk balances. The Committee will continue to reduce its holdings of U.S. Treasury securities, agency debt, and agency mortgage-backed securities. The Committee is firmly committed to supporting maximum employment and returning inflation to its 2% target.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor how the latest information affects the economic outlook. If risks emerge that could impede the achievement of the goals, the Committee will be prepared to adjust the monetary policy stance as appropriate. The Committee's assessment will reference a wide range of information, including labor market conditions, inflation pressures and expectations, as well as data on changes in financial and international conditions.
The voters in favor of this monetary policy include: FOMC Chair Jerome H. Powell (note: Federal Reserve Chair), Committee Vice Chair John C. Williams (note: President of the New York Fed), Thomas I. Barkin (note: President of the Richmond Fed), Michael S. Barr (note: Federal Reserve Governor), Raphael W. Bostic (note: President of the Atlanta Fed), Michelle W. Bowman
Bowman (Note: Federal Reserve Governor); Cook (Lisa D. Cook) (Note: Federal Reserve Governor); Daly (Mary C. Daly) (Note: President of the San Francisco Fed); Hammack (Beth M. Hammack) (Note: President of the Cleveland Fed); Jefferson (Philip N. Jefferson) (Note: Federal Reserve Governor), Kugler (Adriana D. Kugler) (Note: Federal Reserve Governor) and Waller (Christopher J. Waller) (Note: Federal Reserve Governor). (Voting against this action was Hammack (Beth M. Hammack) (Note: President of the Cleveland Fed), who preferred to maintain the federal funds rate target range at 4.50% to 4.75% at this meeting.)
</blockquote>

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This statement has very little change, which aligns with market expectations. The wording only adds the phrases "degree and timing" when considering future interest rate adjustments. However, this is the second time this year at the FOMC meeting that a voting member has expressed dissent regarding a rate cut, with the President of the Cleveland Federal Reserve hoping to refrain from cutting rates in December

- On December 18, the Federal Reserve lowered interest rates by 25 basis points, indicating a "hawkish easing" stance with a slower pace of future rate cuts.  
- The meeting's statement showed minimal changes, with the addition of considerations regarding the "magnitude and timing" of future adjustments, while dissent emerged from Cleveland Fed President Beth Hammack, who opposed the cut.  
- The Fed aims to achieve full employment and a 2% inflation rate, adjusting its monetary policy based on evolving economic data and risks.

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What changes are there in the comparison of the Federal Reserve's December meeting statement?