Just to add, John….
This marked the first decrease in borrowing costs since March 2020 and came in line with market expectations, although there had been some uncertainty about whether the central bank might opt for a more gradual 25 basis point cut.
In conjunction with the rate cut, the Federal Reserve released updated economic projections that shed light on its future policy path.
Policymakers signalled their intention to reduce the federal funds rate by a total of 100 basis points by the end of 2024, suggesting two more 25 basis point cuts before the year’s close.
Looking ahead to 2025, the central bank projected an additional percentage point of rate cuts, followed by a final 50 basis point reduction in 2026.
These projections indicate a clear shift toward a more accommodative monetary policy stance.
The Federal Reserve’s decision to cut rates reflects its assessment of the economic landscape, including factors such as inflation trends, employment data, and overall economic growth.
By easing monetary conditions, the central bank aims to stimulate economic activity, support job creation, and promote price stability.
