Fed cuts benchmark rate by 50 basis points for first time since 2020
On Wednesday, the Federal Reserve cut its benchmark rate for the first time since March 2020. The rate cut on September 18, 2024, was 50 basis points (bps), a significantly larger adjustment than many analysts expected. According to a press release from the Federal Open Market Committee (FOMC), the central bank remains focused on achieving its 2% inflation target. "Given inflation progress and the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/2 percentage point to 4-3/4 to 5%," the FOMC said. "The Committee will carefully assess incoming data, the evolving outlook, and the balance of risks as it considers further adjustments to the target range for the federal funds rate."
Market analysts will be eager to hear from Fed Chairman Jerome Powell, who will address the media and shed light on the potential direction of the upcoming November 2024 FOMC meeting. Prior to this rate cut, inflation in the US reached a staggering 9.1% during the Biden-Harris administration, the highest level since 1981. Meanwhile, the Fed's federal funds rate was 5.25-5.50%, a 23-year high. This 50 basis point rate cut could signal the beginning of a long-term easing cycle. $BTC $BNB $ETH
