Fed Cuts Rates 25 Basis Points
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Federal Reserve officials collectively penciled in two more quarter-point interest-rate cuts for the rest of the year, signaling the central bank is poised to lower rates consecutively at its last two scheduled meetings.
Futures on the federal funds rate, which measure the cost of unsecured overnight loans between banks, further raised the odds on Wednesday that the Federal Reserve will deliver another interest rate cut at the October meeting,
At long last, the Federal Reserve is on the verge of resuming rate cuts. The Federal Reserve last cut the Federal Funds Rate to its current target level of 4.25-4.50% in December 2024.
The Federal Open Market Committee cut the federal-funds rate by a quarter percentage point on Wednesday because members see a “shift in the balance of risks,” Fed Chair Jerome Powell said in opening his post-meeting press briefing.