Wed Sep 18 14:12:22 UTC 2024: ## US Fed Expected to Cut Interest Rates for the First Time in Four Years

**Washington D.C., September 18, 2024** – The US Federal Reserve is set to announce its sixth interest rate decision for 2024 today, with a widely anticipated reduction in borrowing costs for the first time since 2020. The Fed’s Federal Open Market Committee (FOMC) is expected to lower the policy rate by either 25 or 50 basis points from the current 5.25%-5.50% range.

This move comes after a year of steady rates aimed at curbing inflation, which has finally begun to cool. The central bank has held rates at a 23-year high for the past 12 months, but recent data showing continued inflation moderation has paved the way for a reduction.

While a 25-basis point cut is considered the most likely outcome, market analysts believe a more significant 50-basis point cut could signal concerns about the economic outlook. However, a stronger-than-expected core inflation reading in August has tempered expectations for such an aggressive move.

The decision will be announced at 2 pm EST by Fed Chair Jerome Powell, who has expressed confidence that inflation is on a “sustainable path back to two percent.” He has hinted at multiple rate cuts in the future, with the timing and pace of further reductions contingent on incoming data.

Gold prices are expected to rise following a rate cut due to a lower opportunity cost for holding non-interest yielding assets, a weakened US dollar, and increased demand as a hedge against inflation.

The Fed’s announcement is being closely watched by investors and economists alike, as it could impact global financial markets and the trajectory of the US economy. The press conference will be live-streamed on the Fed’s website and YouTube channel.

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