BofA Global Research raised its forecast for the Federal Reserve's anticipated interest rate cuts for the remainder of this year to 75 basis points, after the U.S. central bank kicked off a widely expected series of reductions on Wednesday.

The US Federal Reserve wants to get to neutral quickly as it increasingly prioritises potential jobs weakness at a time when it is more comfortable with the inflation backdrop.

Market participants were uncertain about the size of rate cut prior to the Fed meeting, laying the groundwork for volatility on the markets.

NEW YORK (Reuters) -Futures on the fed funds rate, which measures the cost of unsecured overnight loans between banks, have priced in on Wednesday about 73 basis points of additional rate cuts by the Federal Reserve by the end of the year,

The Federal Open Market Committee's decision to cut its benchmark rate by 50 basis points, instead of the standard 25-bp increment, shows that the Fed doesn't want to get behind the curve in fighting unemployment the way it did when inflation surged after the pandemic,

The Fed noted that its rate-setting committee "has gained greater confidence that inflation is moving sustainably toward 2 percent" and believes the risks to achieving its employment and inflation goals are roughly balanced.

The dollar edged higher 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 recede to the U.

The Federal Reserve cut interest rates on Wednesday for the first time since March 2020, lowering the Fed funds rate by 50 basis points as it declared the fight against inflation all but won. The decision to go with a larger 50 basis point rate cut,