The Federal Reserve (Fed) made a significant move yesterday to lower the benchmark interest rate by 50 basis points (bps)—the first rate cut since March 2020. I understand that market shifts can spark questions and concerns, and I’m here to offer some perspective.

What Happened and Why It’s Significant

In the FOMC September 2024 meeting, the Fed cut its key interest rate by 50 bps (0.50%), bringing it down to a range of 4.75% to 5% from 5.25% to 5.50%. This larger-than-expected cut came in response to falling inflation and a weakening job market. Here are a few key takeaways from the meeting: Shifting Focus to Support Growth: With the Fed gaining confidence that inflation is approaching its 2% target, it is shifting its focus toward fostering economic growth and a healthy labour market. This marks a recalibration of US monetary policy to an environment of lower inflation...