U.S. Federal Reserve Cuts Interest Rates for First Time in Nine Months
Benchmark rate lowered to 4.00-4.25% as Fed signals more cuts ahead, despite inflation remaining above target.
The U.S. Federal Reserve has lowered its benchmark interest rate for the first time since December, a move aimed at stimulating the economy amid slowing global growth and easing inflationary pressures.
The cut is expected to weaken the U.S. dollar, affecting global markets and shifting investor expectations. Economists say the decision reflects growing concern over sluggish consumer spending and geopolitical uncertainties.
“The Fed is trying to balance between supporting growth and keeping inflation under control,” said an economist at Goldman Sachs. “This cut signals that policymakers see risks tilting more toward slowdown than overheating.”
Major U.S. banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, responded quickly by lowering prime lending rates (the reference for many consumer and business loans) from 7.50% to 7.25%, easing borrowing conditions.
The move comes as other central banks, including in Europe and Asia, also adjust monetary policies in response to shifting global economic conditions.
Source: AP News
