Fed Makes Supersized 50 bps Cut — First Since March 2020

The Federal Reserve cut its federal funds rate by a supersized 50 basis points, lowering the target range to 4.75–5.00%. This was the first Fed rate cut since the emergency COVID cuts of March 2020. Chair Powell framed the larger cut as a 'recalibration' appropriate given declining inflation and rising unemployment. The move signaled the start of an easing cycle.