A new era of easy money is dawning

Published On Sep 4, 2024, 4:00 AM

The Federal Reserve is set to cut interest rates for the first time since 2020, likely beginning a new era of easier monetary policy. This change is expected to make borrowing cheaper for consumers and businesses, leading to increased spending and investment. The current benchmark rate is at a 23-year high of 5.25% to 5.5%. Fed Chair Jerome Powell and other officials are aiming for a "soft landing" for the economy, meaning a reduction in inflation to the target rate of 2% without triggering a recession. While a cautious approach remains due to the risks in the job market, there is optimism regarding the future economic outlook.