Federal Reserve Slashes Rates, Signals New Era of Easing

• The Federal Reserve cut its benchmark interest rate by half a percentage point, marking the first reduction since the pandemic began.
• This significant cut leaves the federal funds rate at a range of 4.75 to 5 percent, with more reductions expected.
• Fed Chair Jay Powell emphasized the move aims to maintain economic and labor market strength while addressing inflation.
• US stocks initially rallied but later dipped, reflecting market uncertainty about the Fed's future actions.
• President Joe Biden welcomed the decision, highlighting its positive impact on inflation and job creation.

Source: Financial Times