Federal Reserve cuts benchmark interest rate: Here’s what it means
The Federal Reserve recently cut its benchmark interest rate by a half-point after more than two years of high rates “that helped tame inflation but also made borrowing painfully expensive for American consumers,” according to the Associated Press.
The cut is the Fed’s first in more than four years, and has brought the federal borrowing rate down between 4.75% and 5%.
“This decision reflects our growing confidence that with an appropriate recalibration of our policy stance, strength in the labor market can be maintained in a context of moderate growth and inflation moving sustainably down to two percent,” Jerome Powell, Federal Reserve chairman announced last month.