FOMC Cuts Rates by 25bps, Median Projection Shows 50bps More Coming

Market Reaction - The markets are experiencing a bounce, with the S&P turning positive and the Dow increasing from 260 to over 400 points [1][10] - The S&P 500 saw a rise of approximately 15 points after initially being down by 6 points [10] Federal Reserve Statement - The Federal Reserve issued a cautious statement acknowledging inflation and the labor market, resulting in a 25 basis point cut [3][8] - The Fed's median projection indicates an expectation of 50 basis points more in rate cuts for 2025, aligning with market expectations [5][7] Dissenting Opinions - Steven Myron, a recent appointee from the Trump administration, dissented in favor of a half-point cut, highlighting differing views within the committee [5][6] - Among the 19 officials, nine see two additional cuts in 2025, while six officials do not anticipate any further reductions [6][7] Market Trends - The 10-year bond yield decreased from 4.05% to 4.01%, indicating a shift in investor sentiment [11] - The market's initial reaction was characterized by volatility, but it ultimately settled into a rally [9][10]