The Federal Reserve cut interest rates by 50 basis points at its September meeting, lowering the target range to 4.75%-5%. This bold move defied the predictions of most economists who had anticipated a more modest 25-basis-point reduction.
The Fed also hinted at the potential for additional cuts in the coming months, with the updated dot plot revealing a more aggressive rate-cutting trajectory than forecasted in June.
Fed Chair Jerome Powell highlighted the labor market as a key focus, stressing the importance of acting preemptively to sustain robust employment. “The time to support the labor market is when it's strong, not when you begin to see layoffs,” Powell said.
Powell also called for caution, framing the rate cut as part of a “recalibration” ...
