Fed Signals Interest Rate Cut as Inflation Eases

The Federal Reserve, after much anticipation, is preparing to lower interest rates for the first time in over a year. This decision comes after a period of high inflation, triggered by a confluence of factors including pandemic-related disruptions and the war in Ukraine. To combat this inflation, the Fed had aggressively raised interest rates, which impacted consumer borrowing costs and likely contributed to President Biden`s low approval ratings. With inflation showing signs of decline, the Fed is now shifting its strategy to focus on lowering rates, a move welcomed by financial markets.