PANews, September 19: The Federal Reserve cut the federal funds rate by 50 basis points to 4.75%-5.00%, marking the first rate cut since March 2020. The Fed had raised rates for 11 consecutive times from March 2022 to July 2023, accumulating a total increase of 525 basis points. Over the past year, the Fed had maintained the federal funds rate target range between 5.25% and 5.5%, reaching the highest level in 23 years.

The dot plot indicates the Fed expects the federal funds rate to be 4.4% by the end of 2024, and 5.1% by June; 3.4% by the end of 2025, and 4.1% by June; 2.9% by the end of 2026, and 3.1% by June; 2.9% by the end of 2027; and 2.9% for the long-term rate, with June projections at 2.8%.