One Bank of America strategist thinks the Federal Reserve’s decision to cut interest-rates by 50 basis points this week will ultimately end in tears for investors.

Federal Reserve Chair Jerome Powell is known for providing clear signals about the central bank’s next interest rate move in order to avoid roiling markets. But Wall Street was mostly clueless this week when it came to predicting how big a rate cut the Fed would deliver on Wednesday.

On Sept. 18, 2024, the Federal Reserve Board (The Fed) agreed to a half point interest rate cut, the first since March of 2020. Find Out: How Much Money Do Americans Have in Their Bank Accounts

After months of investor speculation, the Federal Reserve finally cut interest rates for the first time since March 2020.

The Fed's newest iteration of the dot plot has a median projection of 50 bp this year, while the market has nearly 75 bp discounted.

The Fed just lowered the target range of its federal funds rate by 50 basis points. The post The Federal Reserve's jumbo rate cut comes with a big risk appeared first on The Motley Fool Australia.

Inflation might actually fall too far, the Fed governor says, opening the door wider for more half-point interest-rate cuts.

Donald Trump continued his criticism of the Federal Reserve’s move to cut interest rates by 50 basis points less than two months ahead of the election.