FOMC Update
September 18, 2024
The Fed lowered the benchmark rate by 50bp to a target range of 4.75%-5.00%, the first rate cut in over four years. The Fed sees rates at 4.4% by the end of 2024, and 3.4% by the end of 2025. The FOMC statement released says that “in considering additional adjustments” to rates, officials will assess incoming data, evolving outlook and balance of risks.Rates and Market:
- Fed Funds Target: 4.75% – 5.00%
- 2Y treasury yields fell nearly 10bp from pre-decision levels
- Stocks climb post FOMC decision
The FOMC announced the following actions and analysis:
- FOMC votes (11-1) to lower benchmark rate
- The Fed is strongly committed to supporting max employment with inflation around 2%
- The Fed tweaks language to note job gains “have slowed,” and says inflation “has made further progress toward the committee’s 2% objective but remains somewhat elevated”
- Policymakers suggest a 25bp cut at each of the two remaining meetings this year