The rate cut is about repairing the Fed’s damaged credibility. “Going big” with 50 basis points is a psychological gambit, to convey decisiveness and self-confidence.

US stocks gained for a third consecutive week — despite languishing on Friday — as investors were repeatedly reassured that the economy is cooling without falling off a cliff.

Key Takeaways The recent interest rate cut by the Federal Reserve has raised fresh financial questions for everyone from economists to would-be homebuyers. Add Americans nearing retirement to that list.

(Reuters) - St. Louis Federal Reserve Bank President Alberto Musalem on Friday said the U.S. central bank should cut interest rates "gradually" after what he called the "strong and clear message" of a half-point interest-rate cut last week, which he said he supported.

Last November, the 30-year mortgage rate approached 8%. After the Federal Reserve cut interest rates on September 18, it’s approaching 6%.

A fresh reading on inflation Friday keeps the Federal Reserve on track to continue cutting interest rates this fall — likely in 25 basis point increments.

If the Fed cuts interest rates today, borrowers will likely see interest rates ease off their peaks on things like credit cards and auto loans.

The Federal Reserve's aggressive start of the easing cycle has rekindled inflation worries in the U.S. bond market, as some investors fear looser financial conditions could re-ignite price pressures.

The American economy is having a bit of a crisis in 2024. Many people are finding it hard to make ends meet, with prices of things like groceries at an all-time high.

Treasuries rallied — while US stocks fluctuated — as latest inflation data did little to alter expectations on the Federal Reserve’s path.

"The Fed feels as though it has won the battle on inflation and its primary focus is making sure the job market stays steady," Clark Bellin said