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Federal Reserve Implements 25 bps Rate Cut Amid Economic Uncertainty
Federal Reserve Implements 25 bps Rate Cut Amid Economic Uncertainty
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BTCCSquare news:
The Federal Reserve lowered its benchmark interest rate by 25 basis points to a target range of 4%-4.25%, marking its first cut since 2022's aggressive hiking cycle. Policymakers cited weakening labor markets, slowing growth, and stubborn inflation as drivers of the decision.
Divisions emerged within the FOMC as Stephen Miran dissented in favor of a deeper 50 bps reduction. The MOVE comes as inflation remains elevated at 2.7% - still above the Fed's 2% target - despite having moderated from four-decade highs.
Concurrently, the central bank continues balance sheet runoff, tightening financial conditions even as rates decline. The Fed adjusted ancillary rates including a 15 bps reduction in the interest on reserve balances to 4.15%.
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