US: Federal Reserve Cuts Interest Rates By A Half-Point

Article by Suman M Published on: 12:49 am, 19 September 2024

The Federal Reserve announced on Wednesday the first interest rate cut since 2020, a half-percentage point or 50 basis points off benchmark rates. Analysts anticipate more interest rate cuts.

The central bank began raising interest rates in March 2022 to control prices and demand. By last summer, they had reached 5.25% and 5.5%, the highest in more than 20 years.

The inflation rate has fallen to 2.5% last month and is moving towards 2%. The unemployment rate has gone up to 4.2%.

With a cut in basis points, interest rates would fall half a percentage point, which would help borrowers save on their loans.

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