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 in policy, while expected, is significant as it signals the Fed`s confidence in declining inflation and aims to boost consumer confidence. The Fed`s aggressive interest rate hikes, initiated in response to soaring inflation triggered by various factors including the pandemic and the war in Ukraine, have contributed to a decline in President Biden`s approval ratings. With inflation showing signs of easing, the focus now shifts to the pace of interest rate cuts, which will be determined by incoming economic data.