Market Reactions: Fed Slashes Rates 50 Basis Points in First Easing Since Pandemic

Market Reactions: Fed Slashes Rates 50 Basis Points in First Easing Since Pandemic
A screen on the trading floor at the New York Stock Exchange (NYSE) display a news conference with Federal Reserve Chair Jerome Powell following the Federal Reserve rate announcement, in New York on Sept. 18, 2024. Andrew Kelly/Reuters
Reuters
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The Federal Reserve cut interest rates by half of a percentage point on Wednesday, kicking off what is expected to be a steady easing of monetary policy with a larger-than-usual reduction in borrowing costs that followed growing unease about the health of the job market.

The Fed’s new Summary of Economic Projections showed policymakers see the Fed’s benchmark rate, now at 4.75 percent–5.0 percent, falling by another half of a percentage point by the end of this year, another full percentage point in 2025, and by a final half of a percentage point in 2026 to end in a 2.75 percent–3.00 percent range.