🇺🇸🧐The US Fed is lowering interest rates for the first time in 4 years
The US Federal Reserve (Fed) cut the key rate by 50 basis points to a target range of 4.75%-5.0% for the first time since 2020. The Fed expects two more rate cuts of 25 basis points in 2024. The regulator also expects a rate cut of 100 basis points in 2025. Therefore, the regulator forecasts rates at the level of 4.4% at the end of 2024.
The median rate forecast for 2025 drops to 3.4%, meaning four additional quarter-point increases next year. The statement added wording that the committee was "determined to maintain maximum employment" in addition to returning inflation to the 2% target.