The Federal Reserve announced the first interest rate cut in four years at its September policy meeting amid progress in slowing down the pace of inflation toward its 2% goal.
The Federal Reserve on Wednesday announced a long-awaited interest rate cut, lowering the benchmark rate by 50 basis points from what was the highest level in 23 years as the central bank eased borrowing costs following progress in the fight against inflation. The Fed's first interest rate cut since March 2020 lowers the benchmark federal funds rate to a range of 4.75% to 5%. Interest rates had been at a range of 5.25% to 5.
The central bank typically chooses to move forward with a smaller 25 basis point cut at the start of a rate-cutting cycle, though it has made larger cuts when there is a higher degree of economic uncertainty. It most recently opted for larger 50 basis point cuts in March 2020 as the COVID-19 pandemic began, as well as in September 2007 amid the housing crisis and in January 2001 when the dot-com bubble burst.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Most Federal Reserve officials ready to cut rates in September if inflation keeps coolingA lower Fed benchmark rate would lead eventually to lower rates for auto loans, mortgages and other forms of consumer borrowing and could also boost stock prices.
Read more »
Treasury yields rally as Federal Reserve signals readiness for September rate cutThe U.S. 10-year Treasury rose on Thursday as dovish minutes from the latest Fed meeting bolstered expectations of an interest rate cut next month.
Read more »
Treasury yields rally as Federal Reserve signals readiness for September rate cutThe U.S. 10-year Treasury rose on Thursday as dovish minutes from the latest Fed meeting bolstered expectations of an interest rate cut next month.
Read more »
Federal Reserve is set to cut interest rates for the first time in 4 yearsHaving all but tamed inflation, the Federal Reserve is poised to do something Wednesday it hasn’t done in more than four years: Cut its benchmark interest rate, a step that should lead to lower borrowing costs for consumers and businesses.
Read more »
Federal Reserve is set to cut interest rates for the first time in 4 yearsHaving all but tamed inflation, the Federal Reserve is poised to do something Wednesday it hasn’t done in more than four years: Cut its benchmark interest rate, a step that should lead to lower borrowing costs for consumers and businesses just weeks before the presidential election.
Read more »
Federal Reserve expected to cut interest rates for the first time in 4 years todayIt's unclear just how large the Fed's rate cut will be.
Read more »