STORY: :: The Federal Reserve cuts interest
rates by half of a percentage point
:: Jerome Powell
Federal Reserve Chairman
:: September 18, 2024
:: Washington D.C.
“Today, the Federal Open Market Committee decided to reduce the degree of policy restraint by lowering our policy interest rate by a half percentage point. This decision reflects our growing confidence that, with an appropriate recalibration of our policy stance, strength in the labor market can be maintained in a context of moderate growth and inflation, moving sustainably down to 2%.”
“We don’t think we’re behind. We do not think we’re, we think this is timely. But I think you can take this as a sign of our commitment not to get behind.”
“We’ve been very patient about about reducing the policy rate. We’ve waited. Other central banks around the world have cut, many of them, several times. We’ve waited, and I think that that patience has really paid dividends.”
The Fed cut interest rates by half of a percentage point on Wednesday, kicking off what is expected to be a steady easing of monetary policy with a larger-than-usual reduction in borrowing costs that followed growing unease about the health of the job market.
Policymakers see the Fed’s benchmark rate falling by another half of a percentage point by the end of this year, another full percentage point in 2025, and by a final half of a percentage point in 2026 to end in a 2.75%-3.00% range.
