Fed Recalibrates - Cuts Rate by Half-Point

On Wednesday, September 18th, the Federal Reserve recalibrated monetary policy and surprised many on Wall Street with a half-point cut, bringing its target range to 4.75% to 5.00%. With inflation easing, the Federal Reserve announced a 50 basis point cut to its benchmark interest rate, representing the first reduction in borrowing costs since March of 2020.

In the press conference that followed the Fed's rate-change announcement, Chairman Powell emphasized that the slowdown in job growth was the key factor behind the rationale to proceed with a larger-than-normal rate cut of 50 basis points. A reminder, the Fed has a dual mandate -  to keep inflation low and to support full employment. Get additional details by clicking the "View Full Newsletter" button below!