Fed Signals Interest Rate Cut as Inflation Eases

The Federal Reserve, after much anticipation, is finally lowering interest rates. This move, while expected, is significant as it signals the Fed`s confidence in declining inflation. The Fed`s aggressive interest rate hikes, initiated to combat the surge in inflation that began in 2021, appear to have been successful. While inflation has been falling, the impact of the higher interest rates on consumer borrowing costs likely contributed to President Biden`s low approval ratings and his decision to withdraw from the 2024 presidential race. The market has been closely watching the Fed`s actions, reacting to any indication of changes in their approach to interest rates.