Federal Reserve Cuts Interest Rates by Half a Point, First Cut in Four Years

Sep 18, 2024, 06:01 PM

The Federal Reserve has cut interest rates by 50 basis points (half a point) to a target range of 4.75%-5.00%, marking its first rate cut in four years since 2020. This decision, made with 11 votes in favor and one dissent, comes amid rising unemployment and lower-than-expected job growth, signaling economic concerns and potential recession. The Fed's more aggressive move aims to bolster the US labor market and indicates further rate cuts are likely, with projections of the interest rate dropping to 4.25%-4.5% by the end of the year.