Federal Reserve kicks off highly anticipated meeting with interest rate cuts on the docket

Published On Sep 17, 2024, 2:00 AM

The Federal Reserve has begun a meeting where it is expected to make its first interest rate cut in four years, with discussions around cutting rates by either 25 basis points or a larger 50 basis points. Recent inflation data shows a decrease, prompting expectations of a series of rate cuts as the Fed shifts its policy in response to easing inflation and softening job growth. Economists predominantly predict a 25 basis point cut, moving the benchmark federal funds rate to between 5% and 5.25%. However, there's market speculation about the possibility of a more substantial 50 basis point cut.