Just waking up? Here's the brief abstract of Wednesday's FOMC charge minimize

FOMC cut policy rates by 50 bp

• target range is now
  4.75-5.00%
• 2024 dot down to 4.4%, indicating another 50 bp by year-end (it was line ball, the difference between year end 25bp and 50bp was only one dot) … expectations are currently 25 bp in November and 25 bp in December.
• longer-run dot was revised higher to
  2.9%
• dot plot shows 2026 and 2027 both at 2.9%

• left QT in place

Economic forecasts

• GDP was revised to 2.0% for 2024-2027
• Unemployment Rate revised higher to 4.4% in 2024 and 2025
• Unemployment Rate seen to 4.3% in
  2026, and 4.2% in 2027
• Core-PCE in 2024 moved to 2.6% (vs. 2.8% prior), 2025
  2.2% (vs. 2.3%), 2026 unchanged at 2.0%

One dissent (first from a Fed Governor in 19 years)

• Bowman dissented in
  favour of a 25 bp cut

More:

• Forexlive Americas FX news wrap 18 Sep: Fed starts rate cuts with a 50 bp cut

This article was written by Eamonn Sheridan at www.forexlive.com.