The Federal Reserve has made a historic move by reducing the key interest rate by 50 basis points, an unusually large cut aimed at addressing economic uncertainties. As per the news outlet Money Control, this brings the benchmark rate down to a range between 4.75% and 5%, marking the first such cut in over four years. The decision comes as the central bank grows more confident that inflation is slowing towards its 2% target, while simultaneously expressing concerns about a weakening job market.
Federal Reserve Chairman Jerome Powell emphasized that the U.S. economy remains strong despite recent challenges. The cut follows 11 consecutive rate hikes since March 2022, a measure that was intended to combat inflation but is now being relaxed. The Fed aims to support job growth and prevent rising unemployment with further rate reductions expected in the coming months, depending on inflation trends and employment conditions.
