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| Economy | |
| Federal Reserve set to cut interest rates TODAY for the first time in more than four years: Questions remain over how big the move will be | |
| 2024-09-18 | |
On Wednesday, the Fed is expected to lower its benchmark rate, as the US central bank starts to reverse the restrictive conditions it imposed to beat back inflation -but whether policymakers opt for a half-percentage-point cut or smaller move remains up in the air. Their choice on how they want to kick off a new easing cycle - less than two months before what is expected to be a close US presidential election - likely hinges more on what signal they want to send as they pivot from the highest interest rates in a quarter of a century than about expectations for near-term macroeconomic impact, even as their worries about the job market grow. A half-percentage-point cut - now given more than a 60 per cent probability in rate futures markets - would signal a commitment to sustaining the current economic expansion and the job growth that goes along with it, something Fed Chair Jerome Powell has said is the top priority now that inflation is approaching the central bank's two per cent target. A quarter-percentage-point reduction in borrowing costs would be more consistent with how the Fed has begun prior easing cycles outside of any brewing crisis. | |
| Posted by:Skidmark |
| #2 Drop was 50 basis points, a half a percent This will have little short term economic impact as even after the cut the rates are pretty high by historic level (the rate hit 4.75% in 2007 but went down and didn't reach that level again until 2023). After a few more cuts people will begin to borrow for vacations, home improvement, etc. |
| Posted by: Lord Garth 2024-09-18 15:08 |
| #1 Gas prices dropping 30 to 50 cents a gallon in swing states. Good, but fake, economy news, and etc. What next, a 6% to 8% SSA COLA anouncement? Oh thats right, the national election is just weeks away? |
| Posted by: NN2N1 2024-09-18 13:45 |