Break or Bust into Fed MinutesThe Federal Open Market Committee (FOMC) meeting held on September 17-18, 2024, concluded with a significant decision to cut the federal funds rate by 50 basis points, bringing it to a range of 4.75% to 5%. This marked the beginning of a new interest rate-cutting cycle, the first since March 2020.
In their discussions, FOMC members noted that while economic activity continued to expand, job gains had slowed and unemployment had risen slightly, though it remained low. Inflation showed progress towards the Fed's target of 2%, but was still elevated.
The committee expressed a balance of risks regarding employment and inflation, indicating that they felt confident in this rate cut amid improved inflation data.
The FOMC also projected further rate cuts in the coming months, with expectations for an additional 50 basis point reduction over the next two meetings. The economic outlook remains uncertain, and members emphasized that they would continue to evaluate incoming data and evolving conditions before making further adjustments
