Tag: us fed

The US Fed has decided to cut rates to a range of 3.75% to 4% during the meeting of the Federal Open Market Committee this week.

The US Federal Reserve has decided to cut interest rates by 0.25% in a meeting this week after the US created only 22,000 jobs in August, well below trend.

The dovish cut is the first by the Fed since March 2020 during Covid, and there could be two more smaller cuts on the way before the end of the year.

US Fed chair Powell has made clear that a rate cut is in view, as markets wait for upcoming job figures to assess the size of any cut.

If correct, this will lead to the federal funds rate ending the year at 4.3%, while the Fed "dot plot" shows 4.63%