The Fed cut rates by half-point: What to know

Published On Sep 19, 2024, 2:00 AM

The Federal Reserve has cut interest rates by 50 basis points, marking its first reduction since March 2020. This cut lowers the target range for the federal funds rate to between 4.75% and 5%. Fed Chair Jerome Powell indicated that the economy is showing strong overall performance, with progress against inflation, which has slowed to 2.5%. The decision comes amidst expectations of further rate cuts as economic conditions warrant. Following the announcement, the stock market experienced immediate gains but closed slightly lower by the end of trading.