Fed cuts rates for second straight time

The US Federal Reserve headquarters

The Federal Reserve announced today, Nov. 7, its second interest rate cut of 2024, trimming its benchmark rate by 0.25 percentage points.
 

The FOMC reduced its federal-funds rate target range to 4.50% to 4.75%, in line with market consensus estimates for a 25-basis point (bps) rate cut.

In September, policymakers reduced the target interest rate range by 50 bps, marking the end of the tightening cycle that had been in place since March 2022. This also represented the first interest rate cut in over four years.
 

Following the two-day meeting, investors are now focusing on the upcoming press conference by Federal Reserve Chair Jerome Powell. They are looking for signals regarding the future of monetary policy, particularly in light of Republican Donald Trump’s recent victory in the presidential election.