Fed to Cut Interest Rates by 25 Basis Points

The Federal Reserve's decision to cut the interest rate benchmark reflects an adjustment to the current economic conditions as inflation trends downward, making borrowing cheaper.

Jerome Powell emphasized a cautious approach, stating, "It's kind of common sense that when the path is uncertain, you go a little bit slower," indicating a deliberate strategy.

After a peak of 9 percent in 2022, the U.S. annual inflation rate has decreased to approximately 3 percent, which is still above the central bank's target.

The new interest rate benchmark, ranging from 4.25 to 4.5 percent, is seen as a mild economic stimulus, reflecting ongoing efforts to navigate inflation effectively.

Read at The American Conservative