"Fed megaphone": The first 50 basis point rate cut marks a bold start to the rate cut cycle.

According to Jinse Finance, Nick Timiraos, the ‘Fed megaphone’, said that the Federal Reserve voted to cut the Intrerest Rate by 50BP, marking the bold beginning of the rate-cutting action since 2020. Eleven of the 12 Fed committee members supported the decision to cut interest rates, bringing the Benchmark federal funds Intrerest Rate to a range of 4.75% to 5%. Quarterly forecasts released on Wednesday showed that most officials expect to lower the Intrerest Rate by at least 25BP at the November and December meetings. This decision firmly puts the Federal Reserve in a new stage: trying to prevent last year’s interest rate hike (which pushed borrowing costs to the highest level in twenty years) from further weakening the U.S. labor market.