The Federal Reserve cut rates by 50 bps.
The median projection has two more 25 bps rate cuts in 2024, for a total of 100 bps this year.
Fed governor Miki Bowman dissented in favor of a smaller 25 bps cut. It's the first dissent by a governor since 2005.
SUMMARY @AlliesFin
1. Fed cuts interest rates by 50 bps for first time since 2020
2. Fed sees 2 more 25 basis point rate cuts in 2024
3. One Fed governor dissented for the first time since 2005 in favor of a 25 bps rate cut
4. Fed gained "greater confidence" that inflation is moving to 2%
5. Fed will "carefully asses incoming data" and evolve outlook
6. Fed sees 100 bps of rate cuts in 2025 and 50 bps of cuts in 2026
The long awaited "Fed pivot" has officially begun.
As expected, the #Fed caved to the markets and cut interest rates by 50 basis points.
Not only will this round of rate cuts not stop a cooling economy from entering a #recession, but it will also turn up the heat on #inflation, making the recession that much worse.
# gold now.
The median projection has two more 25 bps rate cuts in 2024, for a total of 100 bps this year.
Fed governor Miki Bowman dissented in favor of a smaller 25 bps cut. It's the first dissent by a governor since 2005.
SUMMARY @AlliesFin
1. Fed cuts interest rates by 50 bps for first time since 2020
2. Fed sees 2 more 25 basis point rate cuts in 2024
3. One Fed governor dissented for the first time since 2005 in favor of a 25 bps rate cut
4. Fed gained "greater confidence" that inflation is moving to 2%
5. Fed will "carefully asses incoming data" and evolve outlook
6. Fed sees 100 bps of rate cuts in 2025 and 50 bps of cuts in 2026
The long awaited "Fed pivot" has officially begun.
As expected, the #Fed caved to the markets and cut interest rates by 50 basis points.
Not only will this round of rate cuts not stop a cooling economy from entering a #recession, but it will also turn up the heat on #inflation, making the recession that much worse.
# gold now.