Categories: News

BREAKING: US Federal Reserve slashes interest rates by 0.5% in consequences for Nigeria

On Wednesday, the U.S. Federal Reserve implemented a 0.5% cut to its interest rates, marking the start of what many analysts anticipate will be a sustained phase of monetary easing.

This more aggressive reduction in borrowing costs follows rising concerns about the state of the U.S. job market.

Advertisement

In its latest statement, the Federal Open Market Committee (FOMC) expressed greater confidence in inflation moving steadily towards its 2% target.

 

Advertisement

The committee believes that risks to meeting both inflation and employment objectives are now more balanced. However, not all officials were in agreement—Governor Michelle Bowman preferred a smaller 0.25% cut.

The Fed’s projections indicate further cuts, with another 0.5% reduction anticipated by the end of 2024, a full percentage point drop in 2025, and a final 0.5% cut in 2026.

Advertisement

The long-term federal funds rate is expected to settle between 2.75% and 3.00%, a slight upward revision from previous expectations.

Fed Chair Jerome Powell explained, “This action underscores our increasing confidence that, with proper adjustments to our policy, the labour market can remain robust while inflation steadily declines toward our 2% target.”

Advertisement

What this means for Nigeria: The Federal Reserve’s move to lower rates carries notable consequences for Nigeria, particularly in terms of investment flows, currency dynamics, and inflationary trends.

 

Advertisement

More details later…

citynews

Recent Posts

Tinubu promotes Acting Chief of Army Staff, Oluyede to Lt Gen

President Bola Tinubu has promoted the acting Chief of Army Staff, Olufemi Oluyede to the…

20 mins ago

Digital Transformation: Maida, Kekere-Ekun Speak At NCC’s Annual Workshop for Judges in Lagos

Welcome Address Delivered at the 2024 Edition of the Judges Workshop at Sheraton Hotel Ikeja,…

6 hours ago

Breaking: House Of Reps Finance Committee Visits FIRS

The House of Representatives Finance Committee has paid a working visit to the headquarters of…

8 hours ago

BREAKING: Tinubu govt drops treason charges against EndBadGovernance protesters

  The Federal High Court in Abuja has dismissed the treason charges brought against the…

12 hours ago

#USRoadToWhiteHouse2024: Trump-Harris polls remain tied in battleground states…

What to know about the end of the #USElection2024 campaign The most recent polling analysis…

12 hours ago

#USElection2024 Live Updates: Trump Vs Harris…Latest Results…Latest Polls

#US election 2024 Live Updates:  What you need to know about USelection2024 latest polls •…

12 hours ago