Fed to cut interest rates by quarter-point
Digest more
Federal Reserve Chair Jerome Powell said the central bank will cut interest rates by a quarter point, following rising inflation and slow job growth.
The cut could lead to lower rates for short-term loans but mortgage rates are less affected by the cut, experts said.
Major indexes are trading just under record highs.
The Federal Reserve is widely expected to announce its first interest rate cut since December 2024 after its two-day meeting wraps Sept. 17.
Fed Chair Jerome Powell will face reporters today in what may be the most politically charged moment of his carer
The Fed is likely to issue a 25 basis point rate cut this week. Options are pricing in a nearly 1% move in the S&P 500 on the day of the decision.
Despite a spike in “Fed rate cut” searches, Bitcoin, XRP trade softer into the FOMC. Search interest around the Federal Reserve surged in the United States on Sept. 17, with “Fed rate cut” touching 100 on Google Trends during the final hours before the policy announcement.
Wall Street's three main stock indexes ended lower in choppy trading on Tuesday as caution set in ahead of an anticipated interest rate cut from the Federal Reserve.
Like stocks and bonds, the U.S. dollar saw some big swings after the Federal Reserve announced a quarter-point rate cut and as Chair Jerome Powell laid out the reasoning around the decision and discussed the path ahead.