Federal Reserve goes big with half-point interest rate cut, its first since 2020
The Federal Reserve said Wednesday it was lowering its key interest rate by half a percentage point, an unusually aggressive move designed to cushion the economy from a further slowdown.
The Federal Reserve said Wednesday it was lowering its key interest rate by half a percentage point, an unusually aggressive move designed to cushion the economy from a further slowdown.
The central bank noted job gains had slowed while inflation had made further progress toward its 2% goal.
At a follow-up news conference, Fed Chair Jay Powell said the labor market and the economy in general remain in "solid shape."
By making the larger cut, he said, "our intention is to keep it there."
While the surging inflation that has bedeviled the U.S. economy since the start of the Covid-19 pandemic has largely cooled down, it isn't yet at the Fed's 2% goal, Powell noted.
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