The #US Federal Reserve (#Fed ) lowered its policy rate for the first time in 4 years and drew attention to the range of 4.75-5.00 percent by lowering it by 50 basis points.
In the statement made by the Fed, it was stated that the decision to reduce the interest rate by 50 basis points was taken by a vote of 11 to 1. It was reported that Michelle Bowman was in favor of the 25 basis point interest rate reduction and voted against it.
In the statement, it was reported that the target range for the federal funds rate was lowered by 50 basis points to 4.75-5.00 percent due to fluctuations between the progress in inflation and risk balances.
THE FED LAST REDUCED INTEREST RATE IN 2020 The Fed lowered policy interest rates to the range of 0-0.25 percent in March 2020 due to concerns about the economic economies caused by the novel coronavirus (Covid-19) outbreak and monetary expansion.
The Fed, which started interest rate hikes by completing the asset purchase operation in 2022 against rising inflation in the country, has carried out 11 interest rate hikes since March 2022 and increased interest rates by a total of 525 basis points since March 2022.
With these increases, the bank's policy rate has moved out of the 5.25-5.50 percent range, which has been at its highest level since 2001.
The Fed, which last increased the policy rate by 25 basis points in July 2023, left interest rates unchanged in the current range for 8 consecutive sessions.
Inflation in the US, after seeing the highest level since 1981 at 9 percent on an annual basis in June 2022, was last realized in line with expectations at 2.5 percent on an annual basis in August.
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