🚨 The Federal Reserve has finally initiated a 50 basis point interest rate cut, signaling the start of a new interest rate cycle for the US dollar.

This move, announced on September 18, is a game-changer for the global financial landscape. Everyone was speculating about when this would happen, and now that it has, the real question is: What does it mean for the markets?

🔍 Key Takeaways:

- The Fed is expected to cut interest rates by over 200 basis points within the next year, possibly dropping the rate to around 2.75%.

- These cuts will boost employment and prices but could also push inflation higher, creating complex trade-offs for the economy.

- The Fed’s ultimate goal remains price stability and full employment, though achieving both simultaneously can be challenging in a scenario of stagflation.

🌍 Global Impact:

The US dollar’s influence is global. When the Fed cuts rates, it triggers reactions worldwide. Countries like the UK, Eurozone, and Canada are likely to follow, while Japan and Russia may remain outliers due to unique economic conditions.

Stay tuned to see how markets evolve as this rate cut cycle unfolds!