Short-term U.S. interest rates are likely to be lower on Inauguration Day in 2025 than they are on Election Day, and that means the U.S. Federal Reserve almost certainly will continue to cut the benchmark federal funds rate — not just this week but at its December meeting as well.

Traders trimmed bets Tuesday on Federal Reserve interest rate cuts next year, as early tallies for the U.S. presidential election rolled in through the evening. Traders of futures contracts tied to the Fed's policy rate continue to bet the Fed will cut the policy rate by a quarter of a percentage point this week and again in December,

Short-term U.S. interest rates are likely to be lower on Inauguration Day in 2025 than they are on Election Day, and that means the U.S. Federal Reserve almost certainly will continue to cut the benchmark federal funds rate — not just this week but at its December meeting as well.

The Federal Reserve cut interest rates at its last policy meeting and is gearing up for another rate reduction this week. Sure, there are plenty of other important things to pay attention to. But interest rates have a direct impact on your finances.