September 2024 Federal Reserve Meeting: Fed Cuts Rates by Half Point
The Federal Reserve took action on Wednesday by cutting Interest rates for the first time since the early stages of the Covid pandemic. The half a percentage point reduction in benchmark rates was aimed at addressing concerns about a slowdown in the labor market. This decision, which lowered the federal funds rate to a range between 4.75% – 5%, is the first of its kind since the emergency rate cuts during Covid. The Federal Open Market Committee also indicated further cuts in the future, with projections suggesting additional rate reductions before the year is out. The committee’s decision to ease rates came after assessing progress on Inflation and the balance of risks. Despite solid economic indicators, including steady GDP growth and Inflation above the Central bank‘s target, concerns about the labor market prompted the rate cut. The move is seen as an effort to support the economy amid slowing job gains and rising unemployment rates. The decision reflects the Fed’s commitment to maintaining a balanced approach towards achieving its employment and Inflation goals.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.