The Federal Reserve has decided to cut rates by 25 basis points, making the benchmark rate between 4.50% and 4.75%.

Former Federal Reserve Bank of Kansas City President and CEO Esther George joins Market Domination Overtime to discuss the Federal Reserve's latest rate decision.

George notes that the 25-basis-point rate reduction was "expected." She explains that the Fed is carefully evaluating multiple factors: the number and pace of necessary rate cuts, upcoming fiscal challenges, and how policies from the incoming Trump administration and Congress might impact the economy.

Looking ahead, George forecasts another rate cut in December. However, she emphasizes that "the path is really up for grabs" beyond that point, citing significant economic uncertainty as we head into 2025.

"I think this committee understands that they are not yet achieving their goals," George tells Yahoo Finance. "They still have inflation over target, and they're happy with the labor market where it is, but they still have work to do."

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This post was written by Angel Smith