Federal Reserve Cuts Rates Amid Economic Speculation
- The Federal Reserve cut interest rates by a quarter point on November 7, 2024.
- This decision was influenced by ongoing economic growth and inflation targeting.
- Market reactions included a rise in U.S. Treasury yields following the cut.
On November 7, 2024, the Federal Reserve implemented a quarter-point reduction in interest rates, continuing its efforts to support economic growth and reach a 2 percent inflation target. This follows a half-point cut made during the September Federal Open Market Committee meeting, with the current rate now set between 4.5 percent and 4.75 percent. Analysts suggest that the Fed's approach is now more deliberate, considering the urgency seen previously is lessened by stable economic growth. Despite pressures from political figures, including President-elect Donald Trump, Federal Reserve Chair Jerome Powell affirmed that the institution remains independent and its decisions are based on economic principles rather than political influence. Market reactions included rising U.S. Treasury yields following the election, indicating volatility in response to the changing political landscape. The next scheduled Fed policy meeting is on December 17 and 18, where further adjustments will be discussed in light of future economic expectations.