FOMC Update

November 7, 2024
As expected, the Fed lowered the benchmark rate by 25bp to a target range of 4.50%-4.75%, the second rate cut in the past four years. The Fed changed language on this statement to note “labor market conditions have generally eased,” and repeats “the unemployment rate has moved up but remains low”.
Rates and Market:
  • Fed Funds Target: 4.50% – 4.75% 
  • Market Reaction:  The S&P 500 ticked up to 5973, 2Y treasury and 10Y treasury were mostly unchanged. Currently, the market is pricing in favor of another 25bp rate cut in December, followed by a January pause then multiple reductions through 2025
Unanimous policy vote
The FOMC announced the following actions and analysis: 
  • The statement maintains language saying risks to achieving employment and inflation goals “are roughly in balance”
  • The Fed is seeing a softening in the job market, saying “conditions have generally eased” in the statement 
  • The Fed indicated that inflation remains “somewhat elevated,” but noted inflation “has made progress toward the committee’s 2% objective”

FOMC Statement
Implementation Note issued November 7, 2024