Federal Reserve Lowers Rates by 0.5%

Good afternoon,

The Federal Reserve cut interest rates by 0.5% on today; this is the first rate cut in over four years. The committee noted that inflation is moving closer to their 2% target.  They stated, "In light of the progress on inflation and the balance of risks, the Committee decided to lower the target range for the federal funds rate..."

It is also worth noting housing starts in the US was reported this morning an increase of 9.6% month over month, bringing it to a 4-month high stronger than expectations of 1.318 million.

The FOMC expects rates to fall around the 4.5% by end of the year.

Click here for the full FOMC statement

https://www.federalreserve.gov/newsevents/pressreleases/monetary20240918a.htm