Wall Street Reacts to ‘Dovish’ First Fed Rate Cut in 4 Years
- US central bank kicks off easing cycle with a half-point cut
- Fed’s dot plot shows another 50 basis points of easing in 2024
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Traders added to bets on further easing by the Federal Reserve and the dollar ticked lower after the US central bank cut interest rates by a half-point in its first reduction in four years.
The move brings to an end weeks of speculation about whether the Fed would kick start its easing cycle with a quarter- or half-point cut. Traders were pricing a roughly even chance of each outcome in the immediate run-up to the decision.