The Federal Reserve announced a 50-basis-point interest rate cut, lowering the benchmark rate to 4.75%-5%, marking the first cut since March 2020. This move follows progress in reducing inflation, which slowed to 2.5% annually in August, down from a 9.1% peak in June 2022.
Fed Chair Jerome Powell emphasized the focus on maintaining maximum employment and stable prices, while the Fed will adjust its policy based on economic data. The rate cut exceeded market expectations of a smaller 25-basis-point reduction, with more cuts anticipated in future meetings. Markets reacted positively, with stocks hitting record highs.
Federal Reserve cuts interest rates by half-point; first rate reduction in four years
Sep 18, 2024
Article from Fox Business by Eric Revell
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