Those closely following the economic agenda had their eyes on the Fed’s interest rate decision. The eagerly awaited interest rate decision has been announced. Fed cut its interest rate by 25 basis points and brought it down from 5% to 4.75%.

The Federal Reserve Bank of the United States, Fed, lowered its interest rate from 5% to 4.75%. The Fed interest decision was taken unanimously.

Following the interest rate cut that came right after the U.S. presidential elections, the markets interpreted it as possibly the final interest rate cut of the year. WHAT WERE THE EXPECTATIONS FOR INTEREST RATES? Analysts noted that the data supported the expectations that the Fed would make a quarter basis point interest rate cut in its meeting right after this week’s elections. With these developments, it is almost certain in the pricing in money markets that the Fed will reduce its policy rate by 25 basis points in next week’s meeting, while predictions about another interest rate cut by the bank in December are at 83%. INTEREST RATE CUTS WERE MADE IN RECENT MONTHS The Federal Reserve Bank (Fed) lowered its policy rate for the first time in 4 years, dropping it by 50 basis points to a range of 4.75-5.00%. In the statement made by the Fed, it was stated that the decision to cut the interest rate by 50 basis points was taken with 11 votes in favor and 1 vote against. It was reported that Michelle Bowman was in favor of a 25 basis point interest rate cut and cast the dissenting vote. The statement indicated that, in light of progress in inflation and risk balances, the target range for the federal funds rate was lowered by 50 basis points to 4.75-5.00%.