According to Odaily, the Federal Reserve has announced a decision to lower the upper limit of the interest rate to 5% as of September 18, down from the previous 5.50%. The expected rate was 5.25%. The Fed's dot plot indicates that the median federal funds rate is projected to be 4.4% by the end of 2024, a decrease from the previous forecast of 5.1%.
This marks the first rate cut by the Federal Reserve, leading to a short-term increase in spot gold prices by nearly $20 and a 40-point drop in the U.S. dollar index (DXY). The Federal Open Market Committee (FOMC) statement noted that the risks to employment and inflation targets are balanced.