From Investing.com: 2024-09-19 11:11:00

The Fed Funds rate was cut by 50bps, surprising many but in line with market expectations, leading to a strong market reaction. The Fed cited a solid pace of economic growth, slowing employment growth, and declining inflation, with forecasts indicating lower inflation and higher unemployment rates. The FOMC projects a more dovish stance, aiming for a lower long-term neutral interest rate level. Financial markets responded positively, with European indices rallying and futures hitting record highs. However, the news spells trouble for the dollar, which slipped on the announcement but found temporary support. Central banks around the world may follow the Fed’s lead on easing policy.



Read more at Investing.com: The Fed’s Big Rate and Projections Cut