Insight

Fed Starts Easing with a Big 50bps Cut

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Algo Research Team

Market | Sep 18, 2024 | Views: 64

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Key Summary:

  • Largely positive sentiment after interest rate cut
  • US economic data estimates are weaker
  • More cuts are coming with 2.75-3% target by 2026

The much anticipated interest rate cut by the Federal Reserves (Fed) is finally here with an outsized 50bps reduction, bringing the Federal Funds Rate (FFR) to 4.75-5.0%.


Context: Although it was expected, the size of the cut at 50bps was a surprise for market which had been seeing only 25bps in rate cut in September.

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