The Begin of Interest Rate Cut

- FED cuts interest rate by 50bps for the first time since 2020, a cut that was larger than many analysts had predicted.

- FED sees another 50bps rate cut by end of 2024, 100bps by 2025 and another 50bps by 2026 to end the interest rate in a 2.75%-3.00% range.

- Jerome Powell said the aggressive action was to ensure high borrowing costs would not end up hurting the economy while keeping inflation in check. He denied that the FED was worried about the start of a serious slowdown.

- Stock market jumped briefly after the FED announcement but ended the session lower.