The Fed lowered interest rates after four years.

In a statement following its policy meeting on September 18 (local time), the US Federal Reserve (FED) decided to cut interest rates by 0.5%, beginning a cycle of monetary easing.

Federal Reserve Chairman Jerome Powell speaks after the decision to lower interest rates. Photo: CNN.

According to CNBC News, this is the Fed's first interest rate cut since 2020. The Fed stated that although inflation remains high, policymakers chose to cut the benchmark interest rate (0.5%) to a range of 4.75% - 5.00% based on developments regarding inflation and risk balance.

Fed policymakers forecast that interest rates could fall further by 0.5% by the end of this year, by another 1.0% in 2025, and by another 0.5% in 2026, bringing the benchmark rate to the 2.75%-3.00% range.

According to the FED, recent job growth in the US market has slowed, but the figures remain positive. Meanwhile, retail sales and industrial production in August exceeded forecasts.

The scale of the Fed's first rate cut highlights growing concerns among policymakers about the employment situation. Fed Chairman Jerome Powell will hold a press conference later that afternoon (local time) to discuss the policy decision and economic outlook. This Fed policy meeting is the last one before American voters go to the polls for the presidential election on November 5th.

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Source: https://www.sggp.org.vn/fed-ha-lai-suat-after-4-years-post759644.html