Federal Reserve cuts key rate by sizable half-point, signaling end to its inflation fight
WASHINGTON (AP) — The Federal Reserve cut its benchmark interest rate by an unusually large half-point, a dramatic shift after more than two years of high rates that helped tame inflation but that also made borrowing painfully expensive for consumers. The rate cut, the Fed’s first in more than four years, reflects its new focus on bolstering the job market. Coming just weeks before the presidential election, the Fed’s move also has the potential to scramble the economic landscape just as Americans prepare to vote. The policymakers also signaled that they expect to cut their key rate by an additional half-point in their final two meetings this year, in November and December. They envision four more rate cuts in 2025 and two in 2026.
