Summary of the FED's Decision in September 2024:
The FED cut interest rates by 0.5%, marking the first rate cut since the COVID pandemic in March 2020.
- 11 out of 12 FED members supported today's decision to reduce rates.
- The median forecast suggests there will be two more rate cuts by the end of 2024, totaling an additional 0.5%.
- 8 out of 19 FED officials favor two more cuts this year.
- 7 out of 19 officials prefer only one more cut this year.
- 2 out of 19 officials want to maintain the current rate.
- 1 official advocates for three more cuts this year.
- Most agree on further rate cuts in 2025, with four cuts expected, totaling 1%, bringing rates down to around 3.4% by the end of 2025.
A further 0.5% cut is projected for 2026.
The FED is now "more confident" that inflation is moving toward the 2% target.