Federal Reserve interest rate cut, involving 5 policy interest rates:
1. Federal funds target rate range, currently 4.25%-4.50%
2. Ceiling rate 4.40% (interest on reserves paid by the Federal Reserve to banks)
3. Floor rate 4.25% (interest on overnight reverse repos paid by the Federal Reserve)
4. Penalty rate 4.50% (interest on overnight reverse repos charged by the Federal Reserve)
5. Penalty rate 4.50% (borrowing cost for banks at the Federal Reserve's 'discount window')
Important decisions from the meeting on December 18:
1. Withdraw the floor rate — support the Federal Reserve's continued QT for a longer period
2. Carry out QT (quantitative tightening) to the end
3. Dot plot short-term interest rate forecast — reduce next year's interest rate cut delay, release hawkish signals (often inaccurate)
4. Raise long-term interest rates
5. Raise inflation expectations
6. Raise GDP growth expectations
7. Lower unemployment rate expectations