TechFlow News On Wednesday, September 18, Eastern Time, the Federal Reserve announced after the FOMC meeting that the target range of the federal funds rate would be reduced from 5.25% to 5.50% to 4.75% to 5.0%, a decrease of 50 basis points. This is the first rate cut since the Fed started this round of tightening cycle in March 2022. From March 2022 to July last year, the Federal Reserve raised interest rates 11 times in more than a year, with a cumulative increase of 525 basis points. Since July last year, the Federal Reserve has kept its interest rate unchanged for eight consecutive meetings, keeping the interest rate at its highest level since 2001.
The Federal Reserve has started an easing cycle, cutting interest rates for the first time in four years. What makes the market even more excited is that the Fed cut interest rates by an extraordinary amount at the beginning. The market reacted violently in the short term. The US stock market rose sharply in the short term. The 10-year US Treasury yield plunged from above 3.69% to below 3.64%, and the overall trend fell during the day. The gold price rose by about $20 in the short term. The US dollar index fell by 40 points.