MARKET UPDATE OUTLOOK: Forex, Commodities and Indices [Monday day, September 19, 2024]

• The dollar strengthened in choppy trading after the Federal Reserve on Wednesday cut interest rates by half a percentage point, citing greater confidence that inflation will continue to fall to the U.S. central bank’s annual target of 2%.
• The Fed cut its overnight interest rate to a range of 4.75%-5.00%, and policymakers expect the Fed’s benchmark rate to fall by another half percentage point later this year, another full percentage point in 2025, and a final half percentage point in 2026 to end in a range of 2.75%-3.00%.
• Gold fell back to $2,563 after nearly hitting a new record high of $2,600 as investors digested the Fed’s latest decision. The Fed delivered a larger-than-expected 50bps rate cut, the first in more than four years.
• The central bank also released its latest economic forecasts. Policymakers had anticipated a total rate cut of 100bps. However, during a regular press conference, Chairman Powell noted that the Fed was in no rush to ease policy and that the Fed’s dot plot projections for rates were not a policy plan.
• Major stock indexes rose on Wednesday as traders digested a big rate cut from the Federal Reserve, which is seeking to lower borrowing costs in the world’s largest economy for the first time in more than four years.
• The U.S. central bank cut its overnight interest rate by half a percentage point, more than the usual quarter-point adjustment, citing greater confidence that inflation will continue to fall toward its 2% annual target.

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