The Federal Reserve has initiated an aggressive monetary policy easing by cutting interest rates by 50 basis points to 4.8%, marking the first reduction since the pandemic started. Wall Street analysts anticipate further rate cuts, projecting a total of 75 basis points in cuts by the end of the year and more in 2025. Despite initial market jitters following Fed Chair Jerome Powell's cautious remarks, the S&P 500 is expected to reach new highs. This rate cut has eased funding cost pressures for banks, though not all financial institutions will benefit equally. In parallel, the Bank of England has held its rates at 5%, with expectations of further cuts by year-end, which is good news for mortgage holders but less so for savers. These monetary policy changes come amid ongoing economic concerns, including potential recession fears in the US.