U.S. Federal Reserve makes half-point cut in first rate reduction since 2020

The U.S. Federal Reserve announced a half percentage-point cut in its key lending rate, the first reduction since the pandemic, just before the upcoming presidential election. This decision will lower borrowing costs for consumers and businesses, impacting everything from mortgages to credit cards. The Fed also plans to make further cuts by the end of the year and in 2025. The central bank is confident that inflation is moving towards its target and sees a balanced risk in achieving its goals of employment and inflation. Policymakers also updated economic forecasts showing a slight increase in the unemployment rate and lower inflation rate compared to previous estimates.