The Federal Reserve cut interest rates by 50 basis points, the first rate cut in four years

PANews reported on September 19 that the Federal Reserve cut the federal funds rate by 50 basis points to 4.75%-5.00%, the first rate cut since March 2020. The Federal Reserve has raised interest rates 11 times in a row from March 2022 to July 2023, with a cumulative increase of 525 basis points. Over the past year, the Federal Reserve has maintained the target range of the federal funds rate between 5.25% and 5.5%, the highest level in 23 years. The dot plot shows that the Federal Reserve expects the federal funds rate to be 4.4% at the end of 2024 and 5.1% in June; the federal funds rate is expected to be 3.4% at the end of 2025 and 4.1% in June; the federal funds rate is expected to be 2.9% at the end of 2026 and 3.1% in June; the federal funds rate is expected to be 2.9% at the end of 2027 and 2.9%; the long-term federal funds rate is expected to be 2.9% and 2.8% in June.