On Wednesday, the U.S. Federal Reserve lowered its benchmark interest rate for the first time since March 2020. The Sept. 18, 2024 rate cut amounted to 50 basis points (bps), a notably bigger adjustment than many analysts anticipated. According to the Federal Open Market Committee (FOMC) press release, the central bank remains focused on reaching its 2% inflation target. “In light of the progress on inflation and the balance of risks, the committee decided to lower the target range for the federal funds rate by 1/2 percentage point to 4-3/4 to 5 percent,” the FOMC said. “In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.”

Market analysts will be eager to hear from Fed Chair Jerome Powell, who will address the media and shed light on the potential direction for the upcoming November 2024 FOMC meeting. Before this rate cut, during the Biden-Harris administration, inflation in the U.S. hit a staggering 9.1%, the highest level since 1981. Concurrently, the Fed’s federal funds rate, which stood at 5.25-5.50%, was at a 23-year high. This latest 50bps cut could signal the beginning of a prolonged easing cycle.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。