US Fed makes half-point cut in first rate reduction since 2020

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US Fed makes half-point cut in first rate reduction since 2020
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US Fed makes half-point cut in first rate reduction since 2020

The US Federal Reserve cut its key lending rate by half a percentage point Wednesday in its first reduction since the pandemic, sharply lowering borrowing costs shortly before November's presidential election.

They also pencilled in an additional half-point of cuts before the end of this year, and an added percentage point of cuts in 2025. The Fed said its rate-setting committee"has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance".

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