The U.S. Federal Reserve surprised many economists by cutting interest rates by 50 basis points on Wednesday, despite expectations for a more moderate reduction. This move comes as the Fed grapples with slowing economic growth and persistent inflation.
after the U.S. central bank lowered interest rates by 50 basis points on Wednesday. Markets had raised the probability of the outsized move ahead of the meeting, but the announcement came as a surprise to many economists.more severely than previously thought.that he expects policymakers to slow the pace of rate cut s after last week's half-point reduction.
"I think after 50 basis points, we're still in a net tight position," Kashkari said in a CNBC "Squawk Box" interview. "So I was comfortable taking a larger first step, and then as we go forward, I expect, on balance, we will probably take smaller steps unless the data changes materially." Investors are set to closely monitor further comments from Fed officials. Fed Governor Michelle Bowman and Fed Governor Adriana Kugler are both scheduled to deliver remarks on the U.S. economic outlook at separate events on Tuesday.
On the data front, consumer confidence data for September and Richmond Fed surveys for September are both scheduled to be released at 10 a.m. ET.
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