US Fed Cuts Rates to 3.5-3.75%, Launches $40 Billion Bond-Buying Program.
AI Summary1 min read
TL;DR
The US Federal Reserve cut interest rates to 3.5-3.75% and started a $40 billion bond-buying program to address a weak job market and persistent inflation, while raising its 2026 GDP forecast and signaling caution on future cuts.
Tags
Federal Reserveinterest ratesbond-buying programinflationGDP forecast
The US Federal Reserve has cut interest rates by 25 basis points to 3.5-3.75% and launched a $40 billion bond-buying program. The decision was made due to a soft job market and sticky inflation. The Fed's move lifted its 2026 GDP growth forecast to 2.3% and indicated it will wait and see before making further rate cuts. Two Fed officials dissented from the decision.
