Federal Reserve

The Federal Reserve started a rate-cutting cycle on Sept. 18, lowering its benchmark interest rate by 50 basis points (bps) to a range of 4.75% to 5%. The cut is the first since March 2020 after the Fed raised interest rates to a 23-year high point to cool the economy and quell inflation. However, mortgage rates rose following the Fed’s first cut, suggesting that the bond market had already factored in this anticipated action.