Fed Cuts Interest Rates by 25 Basis Points Amid Economic Growth环境

The Federal Reserve today lowered interest rates by 25 basis points, bringing the new overnight benchmark rate to a range of 4.50%-4.75%. This move, in line with market expectations, aims to address signs of slowdown in the labor market and support inflation's progress towards the central bank's 2% target.

The Federal Open Market Committee emphasized that the solid pace of economic activity continues during its two-day policy meeting, which concluded with a unanimous decision to cut rates.

Following the announcement, the S&P 500 maintained a gain of 0.66%. The yield on the 10-year U.S. Treasury rose to 4.353%, while the 2-year yield increased to 4.2347%. The dollar index reduced its loss to -0.54%, and the euro appreciated by 0.48%.

Brian Jacobsen, Chief Economist at Annex Wealth Management in Menomonee Falls, Wisconsin, commented on the Fed's decision, stating that the federal funds rate is still restrictive but less so than before. He suggested that the pace of rate cuts by the Fed might be more gradual due to marginal improvements in growth and inflation.

Ryan Detrick, Chief Market Strategist at Carson Group in Omaha, noted that the Fed's decision was not a surprise and indicated that another rate cut might be possible in December if inflation continues to improve. Detrick also highlighted that the Fed acknowledges improvements in the U.S. economy while signaling the risks of a slowing labor market.

Helen Given, Deputy Trading Director at Monex USA in Washington D.C., characterized the Fed's decision as measured and pointed out that Federal Reserve Chairman Jerome Powell might provide further insights during his press conference, emphasizing a data-dependent approach going forward.

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