FOMC cuts interest rate by 50 bps to 4.75%-5%

Following its meeting in September, the FOMC decided to 50 bps to 4.75%-5% as widely anticipated. Key hints on the outlook for interest rates are expected from the updated Summary of Economic Projections and comments made by Fed Chairman Powell.

Depending on the magnitude of the interest rate cut, the US dollar is subject to a two-way risk. Following the September policy meeting, the US Federal Reserve (Fed) will make announcements regarding monetary policy, and on Wednesday, it will release the updated Summary of Economic Projections (SEP), also known as the “dot plot”.

Although it is largely expected by market players that the US central bank will ease its monetary policy, it was unclear how much and at what size.