Fed Cuts Interest Rates For First Time In Over Four Years

deadline.com:

The U.S. central bank has cut interest rates for the first time in over four years, and it’s a big cut, marking the beginning of the end of what’s been the highest cost in two decades of borrowing money in a move that will send ripples across markets, businesses, consumers and politics.

The half-point cut will make it easier for people to buy homes and cars and take some pressure off highly indebted businesses, in media, entertainment and elsewhere.

The Fed hopes it will spur job growth. Donald Trump has said a cut would help Democrats in the upcoming election. “In light of the 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 4-3/4 to 5 percent.

In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” the Fed’s Open Market Committee said at the close of its scheduled two-day meeting. “The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.” A cut today had been largely priced into stocks but perhaps not one of this magnitude.