In what is yet another vitally important decision for the US economy, the Federal Reserve has opted to cut interest rates by 25bs in October 2024. The decision follows the Fed’s decision to cut interest rates for the first time in four years this September, opting to slash rates 50bps.
The US economy is eyeing a stark turnaround following the historic 2024 presidential election results that arrived earlier this week. The election saw Donald Trump return to the White House and will look to aid the country in continuing to fight resilient inflation figures that fell to 2.1% earlier this week.
BREAKING: 🇺🇸 Federal Reserve cuts interest rates by 25bps.
— Watcher.Guru (@WatcherGuru) November 7, 2024
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Federal Reserve Cuts Interest Rates For The Second Consecutive Month in 2024
November has proven to be a groundbreaking month for the struggling US economy. After years of fending off rising inflation, the Federal Reserve made some important headway. Specifically, it saw the future retreat to the central bank’s 2% target. Although it has yet to fall to that number entirely, it has shown hopeful cooperation.
That has informed the latest action by the Fed. Indeed, the Federal Reserve has opted to cut interest rates by another 25bps in October 2024. This marks the second consecutive interest rate cut for the US, after not doing so for the past four years. Moreover, it processes the country is on a positive trajectory.
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The decision officially brings the federal funds rate down to the range of 4.5% to 4.75%. The interest rate that banks charge for money borrowing was previously sitting in a range of 4.75% to 5%, according to a CBS report. Earlier this week, positive CPI data has many expecting that decline to continue.
The Federal Reserve has seen inflation steady at just above its target. However, it is down considerably from the 40-year high that it reached during the height of the pandemic. Although this most recent interest rate cut will not be immediately felt, it is an important part of what should be an ongoing trend of slashing rates for the central bank.