Monetary Policy Tightening Stancemonetary policy
0.75Weakened80% impact weight
The 50bp cut marked the start of unwinding the tightening stance, lowering the intensity of the monetary-policy-tightening driver as inflation eased.
policyverifiedconfidence: medium
Federal Reserve cuts rates 50bp in September 2024, beginning post-inflation easing under Powell
On 18 September 2024 the Federal Open Market Committee, chaired by Jerome Powell, voted to lower the federal funds target range by half a percentage point to 4.75-5.00%, its first cut after the aggressive 2022-2023 tightening cycle. The move signalled growing confidence that post-COVID inflation was moving back toward the 2% goal while the labour market cooled. The decision carried one dissent (Governor Michelle Bowman preferred a 25bp cut), and began the gradual easing that continued into 2025.
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On 18 September 2024 the Federal Open Market Committee, chaired by Jerome Powell, voted to lower the federal funds target range by half a percentage point to 4.75-5.00%, its first cut after the aggressive 2022-2023 tightening cycle. The move signalled growing confidence that post-COVID inflation was moving back toward the 2% goal while the labour market cooled. The decision carried one dissent (Governor Michelle Bowman preferred a 25bp cut), and began the gradual easing that continued into 2025.
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