The US Federal Reserve has announced the 7th policy decision for 2024 after the 2 days FOMC meeting and has voted to cut the interest rate by 25 basis points. Powell states that the monetary policy is still very restrictive and the policy makers have noted that the job market has eased during the time of inflation. This just happened after Donald Trump’s victory and the Central Bank has maintained the key borrowing rate at 23 year high for a period of 14 months. Now the post will help you get the complete updates on the US FED Meeting Results 2024 which has been just announced.
US FED Meeting Results 2024
The US Federal Reserve has continued its deliberations for the monetary policy decisions and this was held on 6 and 7 November 2024. The new benchmark for the interest rates was announced on 7 November 2024 and the US Central Bank conducted the 2 day Federal Open Market Committee meeting after the high stakes US Presidential Results 2024 were announced. The FED meeting had taken place after new President Donald Trump was elected. This meeting has seen a closer race to the White House for Presidency in the electoral history of the Nation.
Now as per the US FED Meeting Results 2024, it has been seen that there has been a unanimous slash of the benchmark interest rate by 25 basis points or a quarter of percentage point to 4.50-4.75 percent with the Wall Street Estimates. The Policy makers have seen that the job market has taken an ease while the inflation has still been there. The unemployment rate is low but the labor market conditions have eased. After the rate cuts in September, this is the first move in more than 4 years and the policy makers have projected that there will be further quarter point cuts in November and December and in 4 more years.
This Fed Meeting has 5 key highlights and you need to have a look at the given article for the basic updates on the results which the meeting has brought.
Highlights of US Fed Policy Result 2024
- Reduction in key rates by 25 basis points
- Jerome Powell will not leave his power even after being asked.
- Restrictive monetary policy
- US Fed to reduce the balance sheet run
- Wall Street’s logs the best Fed day of 2024
Reduction in Interest Rates
The US Federal Reserve has shown the impact of Donald Trump’s victory on interest rates and has moved ahead with the quarter point cut. The interest rates have been shed by 25 bps & between 4.50% and 4.75%. The decision of the Central bank of the US will help to ease the cost of mortgage and the other loans but the cost of borrowing shall be dependent upon the impact of Trump’s victory and the economy and where the Interest rates are to keep with the inflationary pace.
US Fed Chair Jerome Powell To Not Leave
The Chair Jerome Powell whose term was to end in 2026 has said that he will not resign even if he had been asked to resign by the elected President. On the campaign trail, Trump has accused Powell, who has appointed First to run the US Central Bank, of working in the favor of Democrats, suggesting that he would like to replace him after the term as Fed Chair gets to an end.
If any of the Fed Governors retire, the new one has to serve for a 14 year term and that has to be reconfirmed. Powell has the option to be the Governor after not being the Fed Chair and serve the remaining period.
Monetary Policy Is Restrictive
Even after the positive economic data and the stock markets rally, Powell has said that the Central Bank is pursuing the interest rate cuts as the monetary policy is still tight. Powell has emphasized that the Fed has seen lower borrowing costs which are important for the dual mandate of having a maximum employment.
Even with today’s cut the policy is still very restrictive.
US Fed To Reduce Pace of Balance Sheet Runoff
The Committee will reduce the holdings of the Treasure Security, or the backed securities and the others. The Fed had stated that it will scale the pace which will allow around $25 million in the Treasury Bonds to run off each month as compared to the current amount of $60 billion.
Wall Street’s Logs Best Fed Day of 2024
The US stocks hit fresh in the concerted cross asset and this has been the best for the Federal Reserve in 2024. The Dow finished at a flat pace while S&P 500 and Nasdaq took a jump to new time highs. The Nasdaq Tech-Rich Composite index has jumped to 1.5% to 19269.46.
The S&P 500 has gained 0.7% to 5973.10 while Dow Jones average for the Industrial has been 43729.34
FAQs On US FED Meeting Result 2024
The key rates or the interest rates have been shed by 25 basis points.
No, he said that even after the President asks to do so, he won’t leave his service.
The meeting result was declared on 7 November 2024.