Fed cuts rates by a massive 50bps

The Federal Reserve slashed the target range for the federal funds rate by a substantial 50 basis points to 4.75%-5%.

Officials anticipate a total of 100 basis points in rate cuts by the end of the year, implying two more 25 basis point reductions. For 2025, an additional percentage point in cuts is projected, with a final 50 basis point cut expected in 2026.

The Fed statement said..."Recent indicators suggest that economic activity
has continued to expand at a solid pace. Job gains have slowed, and the unemployment rate has moved up but remains low. Inflation has made further progress toward the Committee's 2 percent objective but remains somewhat elevated."

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