US Fed slashes rates by 50 basis points in first easing since 2020

US Federal Reserve Chair Jerome Powell announced a half a percentage point cut in interest rates, signaling a potential easing of monetary policy. This decision is expected to lower borrowing costs for consumers and businesses, impacting everything from mortgages to credit cards. The move may benefit Democratic candidate Kamala Harris, who has emphasized President Joe Biden’s economic record in her campaign against Donald Trump. The decision was made by an 11-to-1 vote, with one holdout supporting a smaller rate cut. The Fed cited increased confidence in reaching its inflation and employment goals as reasons for the decision. The move surprised some analysts, who were unsure about the size of the cut. The decision is likely to have political implications, as inflation and the cost of living are top concerns for American voters. Trump has criticized the Fed’s decisions in the past, accusing them of being political, which the central bank has denied.