Delivers first 50 bps rate cut in four years, eyes two more in 2024
- The Fed's decision to cut interest rates by 50 bps rather than the expected 25 bps, reflects a preemptive effort to increase the likelihood of a soft landing. While this aligns with market expectations, it exceeded economists' consensus estimates.
- The Federal Open Market Committee (FOMC) voted 11-1 to lower the policy rate to a range of 4.75%-5.00%, with Michelle Bowman, a well-known hawk, dissenting in favour of a quarter-point cut. The last time it cut rates by 50 bps was in March 2020.
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