The Federal Reserve cut interest rates by 25 basis points or 0.25% – on Wednesday as the Down tanked by more than 1,100 points.
The latest rate cut comes after the Fed slashed rates 25 basis points in November and 50 basis points in September.
The benchmark rate is now between 4.25% to 4.50%
CNBC reported:
The Federal Reserve on Wednesday lowered its key interest rate by a quarter percentage point, the third consecutive reduction and one that came with a cautionary tone about additional cuts in coming years.
In a move widely anticipated by markets, the Federal Open Market Committee cut its overnight borrowing rate to a target range of 4.25%-4.5%, back to the level where it was in December 2022 when rates were on the move higher.
Though there was little intrigue over the decision itself, the main question had been over what the Fed would signal about its future intentions as inflation holds steadily above target and economic growth is fairly solid, conditions that don’t normally coincide with policy easing.
In delivering the 25 basis point cut, the Fed indicated that it probably would only lower twice more in 2025, according to the closely watched “dot plot” matrix of individual members’ future rate expectations. The two cuts indicated slice in half the committee’s intentions when the plot was last updated in September.
Meanwhile, the Dow Jones lost more than 1,110 points on Wednesday – its first 10-day losing streak since 1974, CNBC reported.
“Stocks closed lower on Wednesday, with the Dow Jones Industrial Average notching its first ten-day losing streak since 1974, after Federal Reserve Chair Jerome Powell signaled less rates in 2025 than previously forecast,” CNBC reported.
CNBC reported:
The Dow Jones Industrial Average sank deeper into the history books on Wednesday, with the index posting its 10th straight losing day as a disappointing rate outlook by the Federal Reserve rocked the stock market.
The Dow lost 1,123.03 points, or 2.58%, to 42,326.87, for its worst losing streak since an 11-day slide in 1974. The Wednesday decline was its worst since August and only the second time it lost 1,000 points this year in one session. The S&P 500 lost 2.95% to 5,872.16 and the Nasdaq Composite shed 3.56% to 19,392.69 with losses intensifying into the close of trading.
Fed Chairman Jerome Powell told reporters last month that he will not resign his position if Trump asks him to step down.
Reporter: “If [President-elect Trump] asked you to leave, would you go?”
Fed Chair Jerome Powell: “No.”
Reporter: “Do you think that legally you’re not required to leave?”
Powell: “No.” pic.twitter.com/OoSDgvkZ8j
— Yahoo Finance (@YahooFinance) November 7, 2024
DEVELOPING…
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