FOMC initiates rate cutting with 50bp reduction
Experts say Fed’s credibility is not on the line, but Powell remains under significant pressure
The US Federal Reserve today (September 18) reduced its key policy rate by 50 basis points.
Michelle Bowman was the only dissenting voice on the Federal Open Market Committee (FOMC), preferring to lower the federal funds rate by 25bp. The target range now stands at 4.75–5%.
The FOMC began its rate hiking cycle in March 2022. Its most recent cut prior to then had been in March 2020.
The chair of the Federal Reserve, Jerome Powell, said at a press conference that the decision “reflects our growing
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