Gold Finance reported that the Federal Reserve announced an unprecedented 50 basis point rate cut early Thursday morning. Powell said this was to signal policymakers' commitment to maintaining low unemployment after inflation eased.

Following the Fed's sharp rate cut, Bank of America is the only major brokerage to raise its forecast for Fed rate cuts for the rest of 2024. The Wall Street firm said it expects the Fed to cut rates by 75 basis points in the fourth quarter, having previously predicted cuts of 25 basis points at its November and December meetings. According to the Fed's own projections, the federal funds rate will fall by another 50 basis points by the end of 2024. Bank of America economists said that after the larger rate cuts, "we are skeptical whether the Fed wants to deliver a hawkish surprise." The brokerage expects the Fed to cut rates by another 125 basis points in 2025, bringing the federal funds target rate down to a terminal level of 2.75%-3.00% from its current range of 4.75%-5.00%.