Fed slashes interest rates by a half point, an aggressive start to its first easing campaign in four years

[BumRushDaShow]

Source: CNBC

Published Wed, Sep 18 2024 2:00 PM EDT Updated 2 Min Ago


WASHINGTON - The Federal Reserve on Wednesday enacted its first interest rate cut since the early days of the Covid pandemic, slicing half a percentage point off benchmark rates in an effort to head off a slowdown in the labor market.

With both the jobs picture and inflation softening, the central bank's Federal Open Market Committee chose to lower its key overnight borrowing rate by a half percentage point, or 50 basis points, affirming market expectations that had recently shifted from an outlook for a cut half that size.

Outside of the emergency rate cuts during Covid, the last time the FOMC cut by half a point was in 2008 during the global financial crisis.

The decision lowers the federal funds rate to a range between 4.75%-5%. While the rate sets short-term borrowing costs for banks, it spills over into multiple consumer products such as mortgages, auto loans and credit cards.

Read more: https://www.cnbc.com/2024/09/18/fed-cuts-rates-september-2024-.html

[spooky3]

1. Donald will be crying about this. Nt

[BumRushDaShow]

2. Even though

he was the biggest whiner about the interest rates that were being hiked during his first 2 years in office (I think there were 8 hikes before he "cried uncle" and it stopped). Once COVID hit, it was sent back down to near 0 again.

[spooky3]

4. It's all about him, always. Low info voters will see rates coming down

Now and figure Harris might not be so bad for the economy after all.

[BumRushDaShow]

6. Yup

And I did see some articles about him complaining about a "possible" cut.

The GOP has painted an "America" that is like the "mirror" universe of Star Trek, with this apocalyptic setting, and the only place where that exists is in their addled minds.

Almost every "talking point" has been taken away from them - "the economy (including "inflation" and "unemployment" ), "the border", "drill baby drill", & "crime", and they have nothing left but to talk about "pet-eating immigrants", "childless cat ladies", and someone "who suddenly became black".

[IronLionZion]

7. Maybe he'll post on Truth Social how much he hates the Fed

[BumRushDaShow]

8. AND how he would

fire them all (even though HE was the one who made Powell the Chair after Yellen stepped down).

[IronLionZion]

9. That happens to him all the time

he was even investigated by US Attorneys he appointed. And complained about no loyalty.

[LetMyPeopleVote]

3. This makes me smile

I was worried that the Fed would only do a 25 basis point cut

Link to tweet

https://www.reuters.com/business/fed-rate-cut-live-powell-expected-kick-off-new-easing-cycle-2024-09-18/

The Federal Reserve cut interest rates by half of a percentage point, 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.

"The committee has gained greater confidence that inflation is moving sustainably toward 2%, and judges that the risks to achieving its employment and inflation goals are roughly in balance," policymakers on the U.S. central bank's rate-setting committee said in their latest statement, which drew a dissent from Governor Michelle Bowman who favored only a quarter-percentage-point cut.

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.

[Imallin4Joe]

5. Eat it, Orange Fuckface.

Kamala/Tim 2024!

[Ray Bruns]

10. About bloody time.

[LetMyPeopleVote]

11. the Dow is crashing to new record highs today after the Fed cut interest rates

Link to tweet

[onenote]

12. It closed down 103 points.

[BumRushDaShow]

13. It still closed near it's RECORD HIGH from yesterday

and had even had a higher intra-day high before dropping back at the close - https://www.forbes.com/sites/dereksaul/2024/09/18/stocks-briefly-touch-record-highs-after-fed-opts-for-bigger-interest-rate-cut/

[onenote]

14. Yes. But that isn't what the post I responded to said.

Despite posting after the market closed, that poster repeatedly put up a post that made it sound as if, at the time they were posting, the market was breaking records. If it had been posted earlier in the day as a snapshot of the market at that time, it would've been fine. But posting it AFTER the market closed?

I am confident that in the long run the market will respond positively to the Fed decision. How high it will go likely will depend on other pieces of economic news, including upcoming jobs reports.

But I prefer posts on DU to be timely and accurate, not hyperbolic and somewhat misleading.

[BumRushDaShow]

15. But the Dow WAS breaking records today

and if one can't discern the humor that was being attempted using what has been a popular "meme" about Biden as "Dark Brandon", and especially when the GOP has painted the economy as completely "failing", if not destroyed, then maybe one needs to try lightening up a bit.

[LetMyPeopleVote]

16. When trump left office, the Dow Jones was sitting at 31,188.

LOL
Do you remember TFG promising a stock market crash if President Biden was elected? The Dow is also up a great deal for the month

Link to tweet