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The Federal Reserve cuts interest rates by 50 basis points, marking the first rate cut in four years

The Federal Reserve cuts interest rates by 50 basis points, marking the first rate cut in four years

Bitget2024/09/18 23:13
BTC+0.63%

PANews reported on September 19 that the Federal Reserve has lowered the federal funds rate by 50 basis points to 4.75%-5.00%, marking the first rate cut since March 2020.

The Fed has raised rates eleven times consecutively from March 2022 to July 2023, with a total increase of 525 basis points. Over the past year, the Fed has maintained the target range for the federal funds rate between 5.25% and 5.5%, which is its highest level in twenty-three years.

Dot plot projections show that by end of year in December, it's expected that: 
- In December of each respective year:
    - The federal funds rate will be at around:
        - For Year End (YE) Dec '24: ~4.4%
        - YE Dec '25: ~3.4%
        - YE Dec '26: ~2.9%
        - YE Dec '27: ~2.9%

- By June of each respective year:
    - The federal funds rate will be at around:
        - Jun'24 :~5.1%
        - Jun'25 :~4.1%
        - Jun'26 :~3.1%

In addition, long-term expectations for the federal fund's interest rates are projected to be approximately at about ~2..9% with an estimate for June being slightly lower at about ~2..8%.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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