Federal Reserve Cuts Interest Rates by 50 Basis Points on Wednesday, First Cut Since 2020

Sep 18, 2024, 06:09 PM

The U.S. Federal Reserve has cut interest rates by 50 basis points on Wednesday, marking the first reduction since 2020. This half-point move lowers the benchmark rate to a range of 4.75% to 5.00%. The decision comes in response to rising unemployment and lower-than-expected job growth, signaling economic concerns and the potential for a recession. The Fed's aggressive cut aims to bolster the U.S. labor market and stimulate economic growth, while also addressing lingering inflation concerns. The Federal Open Market Committee (FOMC) has indicated that further rate cuts could follow this year.