After nearly a year of waiting, the Federal Reserve has finally decided to return to a loose monetary policy approach. In Wednesday's meeting, the Fed announced a 25 basis point reduction in the benchmark interest rate, bringing the federal funds rate range down to between 4% and 4.25%, the lowest level since December 2022.



The decision to cut interest rates was not unexpected, but rather based on clear signals of a slowdown in U.S. economic growth. The Fed acknowledged in its statement that both economic growth and the job market showed signs of slowing in the first half of the year. This assessment is supported by the latest economic data, particularly the concerning employment report for August. The report indicated that the U.S. economy added only 22,000 jobs, while the unemployment rate rose to 4.3%, reaching a nearly two-year high.

It is more noteworthy that the revisions to employment data from previous months indicate that the actual number of new jobs added is far lower than previously expected. These signs collectively highlight that the US labor market is facing a clear weakening trend.

In the face of these economic indicators, the Fed's decision to cut interest rates reflects its cautious attitude towards the economic outlook. This policy adjustment is aimed not only at stimulating economic activity but also at preparing for a possible further economic downturn.

As the Fed shifts its policy stance, market expectations for more rate cuts in the future are heating up. Investors and economists will closely monitor subsequent economic data and the remarks of Fed officials to assess the future direction of monetary policy and its potential impact on various assets.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 9
  • Repost
  • Share
Comment
0/400
MetaverseMigrantvip
· 16h ago
The Fed is also scared.
View OriginalReply0
MevTearsvip
· 09-20 05:18
It's just blindly cutting interest rates.
View OriginalReply0
consensus_whisperervip
· 09-18 16:44
Powell chickened out again?
View OriginalReply0
CoinBasedThinkingvip
· 09-17 19:50
Gold long order cashing out
View OriginalReply0
GamefiHarvestervip
· 09-17 19:50
Don't panic, keep playing people for suckers.
View OriginalReply0
AirdropDreamBreakervip
· 09-17 19:44
The US stock A50 has risen again.
View OriginalReply0
NFTDreamervip
· 09-17 19:43
I said it early that I would back off! Waiting to play people for suckers.
View OriginalReply0
BuyHighSellLowvip
· 09-17 19:38
Cut Loss has become a habit
View OriginalReply0
SerumSquirrelvip
· 09-17 19:23
Printing money again, the crypto world is to da moon.
View OriginalReply0
View More
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)