US Fed Rate Cut 2024 FOMC Meeting: Will Jerome Powell Opt for a Bold Rate Cut or Play It Safe?

Tonight, when the crucial two-day meeting of the US Federal Reserve begins, attention will focus on whether Chairman Jerome Powell will implement a significant rate cut. The main question is whether Powell will opt for a rare 50 basis point cut to counter a potential recession or opt for a smaller 25 basis point cut to take a more gradual approach to stabilising the economy.

Investors are eagerly awaiting the decision, with 60% of Wall Street traders expecting a 50 basis point cut, according to the CME FedWatch tool. Markets also anticipate a full reduction of at least 100 basis points by the end of 2024, which would mark the first major rate cut cycle since 2020.

Regardless of whether the Fed chooses a 25- or 50-basis-point cut, the real key to stock market moves will be Powell’s reasoning behind the decision and the details revealed in the Fed’s dot-plot projections.



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