> ## Documentation Index
> Fetch the complete documentation index at: https://blogs.scalarfield.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Fed Rate Cuts: The Pivot in Six Moves — V2

> V2: a short visual read on how the Fed eased policy over the last five years.

The Fed's easing cycle was not a drift — it was a sequence of deliberate steps. Over the last five years, the **upper bound of the target range fell by 175 basis points** across **6 cuts**, moving from the peak-policy era into a measured easing regime.

![Fed target rate path](https://sf-viewer.s3.us-east-1.amazonaws.com/932c49bb-ffe4-4601-aab6-6c7be30152b6.svg)

## The Signal

The first cut was the loudest: **50 bps on 2024-09-19**. After that, the Fed shifted into smaller, repeated 25 bp moves — a pattern that says: ease, but do not panic.

![Fed cut sizes](https://sf-viewer.s3.us-east-1.amazonaws.com/4afa5ee0-e679-4986-a0eb-40c01bb50ccf.svg)

## Cut Timeline

| Date       | Cut Size | New Upper Target |
| ---------- | -------: | ---------------: |
| 2024-09-19 |  -50 bps |            5.00% |
| 2024-11-08 |  -25 bps |            4.75% |
| 2024-12-19 |  -25 bps |            4.50% |
| 2025-09-18 |  -25 bps |            4.25% |
| 2025-10-30 |  -25 bps |            4.00% |
| 2025-12-11 |  -25 bps |            3.75% |

## Why It Matters

Rate cuts change the price of time. They can lift duration-sensitive assets, reduce cash yields, and re-open risk appetite — but only if growth holds up. The key market question is not simply **how many cuts?** It is whether cuts are arriving because inflation is cooling, or because the economy is cracking.

**Bottom line:** this cycle shows a Fed trying to normalize policy without losing control of the landing.