The Federal Reserve Cuts Interest Rates, Gold Prices Rise According to the "Adily" website, the Federal Reserve announced a decision to reduce the upper limit of the interest rate to 5% effective September 18, down from 5.50% previously. The expected rate was 5.25%. The Federal Reserve's dot chart indicates that the average federal funds rate is expected to be 4.4% by the end of 2024, down from the previous forecast of 5.1%. This represents the first interest rate cut by the Federal Reserve, which led to a short-term increase in spot gold prices by about $ 20 and a 40-point decline in the US dollar index (DXY). The Federal Open Market Committee (FOMC) statement indicated that the risks to the employment and inflation goals are balanced.