2024 Federal Reserve Rate Cuts, FOMC Schedule, and the 2% Inflation Target Explained
The year 2024 is expected to be pivotal for the global economy and financial markets, with significant attention on the Federal Reserve (Fed) and its monetary policies. The Fed, responsible for managing inflation and ensuring economic stability, has already made crucial decisions on interest rate adjustments through its Federal Open Market Committee (FOMC) meetings in 2024. In this post, we’ll explore the Fed’s 0.5% rate cut in September 2024, the remaining FOMC schedule for the year, and a detailed explanation of the Fed’s 2% inflation target, which guides its policy decisions. 1. The 0.5% Rate Cut at the September 2024 FOMC Meeting On September 19, 2024, the Fed announced a 0.5% reduction in the federal funds rate. This decision came amid signs of economic slowdown and stabilization in inflation, aiming to support economic recovery. The rate cut reflects the Fed’s intention to stimulate growth by making borrowing cheaper and encouraging investment and spending. Investors are now clos...