by Luzi Ann Santos | moomoo News
The Federal Open Market Committee lowered the target Federal Funds rate 50 basis points, citing the progress in inflation and slowing job gains.
Policymakers took the rate to a range of 4.75 to 5%, noting that the committee has gained greater confidence that inflation is moving sustainably toward 2%."
At the same time, the Fed's so-called dot plot showed policymakers forecast the median key interest rate ending 2024 at 4.4%, before declining to 3.4% by the close of next year.
"In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks," according to the press release. "The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective." The new Fed projections indicate a forecast of 2.0% economic growth for the year, with the unemployment rate expected to be 4.4% in the fourth quarter of the year.
The decision to cut borrowing costs by half a percentage point wasn't unanimous. Michelle Bowman voted against the move, preferring instead a 25-basis point reduction at this meeting, according to the press release.
Fed Chairman Jerome Powell is speaking at a press conference right after a federal interest rate meeting. Click the link below to watch the event live on moomoo.
Here's what changed in the new Fed statement:
