The US Federal Reserve reduced interest rates by 50 basis points on Wednesday, September 18. Making it
In its statement, the Federal Open Market Committee (FOMC) said, “In light of progress on inflation and the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/2 percentage point to 4.75% to 5%.”
This is the first reduction in the last four years.
The Federal Reserve announced in a statement that policymakers voted 11-to-1 to lower the US central bank’s benchmark rate to between 4.75 per cent and 5.00 per cent.
This will affect the rates at which commercial banks lend to consumers and businesses, bringing down the cost of borrowing from mortgages to credit cards.
The Fed said its rate-setting committee “has gained greater confidence that inflation is moving sustainably toward 2 per cent, and judges that the risks to achieving its employment and inflation goals are roughly in balance.”
