Federal Reserve Cuts Interest Rates for First Time in 4 Years

The Federal Reserve cut interest rates by half a percentage point on Wednesday, in the hopes it will ease inflation, lowering interest rates to the 4.75% to 5% range. Lawmakers on the committee have gained confidence that inflation is moving sustainably toward 2% and believe the risks to achieving its employment and inflation goals are in balance.

As the Fed makes the rate cut, it will assess incoming data and the evolving outlook, balancing the risks. The committee will continue reducing its holdings of Treasury securities and agency debt.

The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations and financial and international developments.