Highlights
The Federal Reserve reduced the Fed Fund Interest Rate by 50 basis points. Eleven or the 12 board members voted to reduce the interest rate by a half percent. The outlook closing said the Fed expects to reduce the interest rate at least another half percent before the end of 2024.
The Fed referenced the growth of the global and US economy is stable, inflation is coming down, and the labor market is still solid. Powell said the half point cut should send a message to the world that the US Central Bank is strongly committed to achieving price stability without an increase in unemployment which sometimes is the result of disinflation. If inflation remains around 2.5% then the Fed will continue to gradually cut until rates are closer to 3.5%.
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