Fed set to enter new era with first rate cut in 4 years Wednesday. But what comes next?

Basis Points News

Fed set to enter new era with first rate cut in 4 years Wednesday. But what comes next?
Kansas City FedFederal ReserveFed Officials
  • 📰 YahooFinanceCA
  • ⏱ Reading Time:
  • 40 sec. here
  • 7 min. at publisher
  • 📊 Quality Score:
  • News: 36%
  • Publisher: 63%

When the Federal Reserve meets Wednesday, officials are expected to mark the end of an era as they cut interest rates for the first time in four years.

When the Federal Reserve meets Wednesday, officials are expected to mark the end of an era as they cut interest rates for the first time in four years and chart a course for lower rates over the next two years.to a new range of 5.0-5.25% from its 23-year high of 5.25% to 5.5% on Wednesday when their policy meeting concludes. The actions will officially mark the termination of the most aggressive inflation-fighting campaign since the 1980s.

As for ex-Kansas City Fed chief George, she at a minimum she expects a rate cut of 25 basis points every meeting for the rest of the year. Inflation expectations are also dropping. The difference in the yield on a 10-year inflation-protected government bond and a standard bond of the same maturity, a measure of expected inflation, is around the lowest since early 2021. Inflation expectations over the next two years are for CPI inflation of just 1.5%, under the Fed’s 2% target.

But Wilmer Stith, bond fund manager for Wilmington Trust, said, “I think Powell plays it right down the middle.” Stith added that the Fed is very conscientious of the pain associated with a higher unemployment rate, but also conscientious of the cost of living for the average American.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

YahooFinanceCA /  🏆 47. in CA

Kansas City Fed Federal Reserve Fed Officials Wilmington Trust Chair Jay Powell

Canada Latest News, Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

The Fed is not behind the curve: Fmr. Cleveland Fed Pres.The Fed is not behind the curve: Fmr. Cleveland Fed Pres.Federal Reserve Jerome Powell's speech from the Kansas City Fed's Jackson Hole Economic Policy Symposium has Wall Street abuzz. Powell strongly indicated the...
Read more »

Two tornadoes confirmed during storms southeast of Ottawa WednesdayTwo tornadoes confirmed during storms southeast of Ottawa WednesdayScientists with Western University's Northern Tornadoes Project (NTP) confirm two tornadoes touched down in eastern Ontario towns on Wednesday, with one causing some minor damage.
Read more »

Nvidia to report Q2 earnings Wednesday in major test for AI tradeNvidia to report Q2 earnings Wednesday in major test for AI tradeAI giant Nvidia will report its Q2 earnings after the bell on Wednesday.
Read more »

Temperatures in Ottawa to begin cooling off WednesdayTemperatures in Ottawa to begin cooling off WednesdayWhile it will be hot and humid in Ottawa on Tuesday, temperatures are expected to dip closer to seasonal temperatures this week.
Read more »

Verdict in sex assault case of retired vice-admiral Edmundson expected WednesdayVerdict in sex assault case of retired vice-admiral Edmundson expected WednesdayRetired vice-admiral Haydn Edmundson arrives to court in Ottawa on Thursday, Feb. 8, 2024. THE CANADIAN PRESS/Sean Kilpatrick
Read more »

Wednesday’s analyst upgrades and downgrades for August 28, 2024Wednesday’s analyst upgrades and downgrades for August 28, 2024Inside the Market’s roundup of some of today’s key analyst actions
Read more »



Render Time: 2025-02-13 15:14:56