Rate Cut Alert: Fed Poised to Make Historic Move in 2020
2024/9/15 17:04
(Updated at 9/15 17:19)
US Federal Reserve Prepares for Interest Rate Cut
The US Federal Reserve (Fed) is preparing to announce its first interest rate cut in more than four years on the 18th, and policymakers are expected to discuss the extent of the rate cut.
According to Agence France-Presse, Fed Chairman Jerome Powell and other senior Fed officials have stated that as inflation returns to the Fed’s long-term 2% target and the labor market continues to cool, it will cut interest rates this month.
Alicia Modestino, an associate professor of economics at Northeastern University, told AFP, “As much as I think the Fed is trying to say they’re not political animals, we’re in a very crazy cycle.”
The focus of debate among policymakers on the 17th and 18th will be whether to adjust by 25 basis points or 50 basis points.
This rate cut will be the first since March 2020, when the Federal Reserve cut interest rates to near zero to support the US economy through the COVID-19 pandemic.
In 2022, the Federal Reserve began raising interest rates in response to inflation driven by the pandemic and post-war supply tightening in Ukraine.