In partnership with
Welcome back! It’s almost Friday….power through!
The Main Story 🔍
The Fed has cut 50bps, signaling the end of “higher for longer”: After intense debate of 50bps vs 25bps, the 25bps crowd (including us) ended up being wrong. The federal fund rate is now 4.75%-5.0%, 0.50% (50 bps) lower than where it was Wednesday morning. The Fed believes that inflation is heading towards 2% and wants to get ahead of a potential rise in unemployment, although the Fed expects the US to end the year with a 4.4% unemployment rate.
Shockingly, there was only one dissent in the 11-1 vote, with Governor Michelle Bowman arguing to cut by only 25bps instead.