The US Federal Reserve has cut down interest rates by 0.5% in a rare and powerful dovish move, despite traders expecting a cut of only 0.25%. The US Federal Reserve’s interest rate is now set in the range between 4.75% and 5%. Inflation for August was record at 2.2% in line with expectations with the Federal Reserve predicting interest rates to be set at 3.5% by the end of 2025.
In his press conference following the announcement, Fed Chair Jerome Powell said he doesn’t see any signs of an incoming recession despite a cooling labor market.
The Fed Chair’s statement can be read here. The official FOMC statement can be read here, and economic projections here.
For background reading on interest rates you may read this article.
Website Editor
Historian and Publisher
Leave a Reply