Fed Signals Interest Rate Cut as Inflation Eases

The Federal Reserve, after much anticipation, is finally lowering interest rates after steadily raising them for over a year to combat high inflation. This shift is expected to boost consumer confidence and the economy, especially leading into the upcoming election. Inflation surged due to a confluence of factors, including pandemic-related disruptions, increased consumer demand, government stimulus, and the war in Ukraine. The Federal Reserve`s delayed response to rising inflation forced them to raise interest rates rapidly, impacting borrowing costs and consumer sentiment. With inflation showing signs of decline, the focus has shifted to when the Federal Reserve would begin lowering rates, a move eagerly awaited by investors and closely watched by the markets.