Fed Signals Interest Rate Cut as Inflation Eases

The Federal Reserve, after over a year of deliberation, has announced its intention to begin cutting interest rates. This decision, widely anticipated by the markets, signals a turning point in the fight against inflation. The Fed`s move to raise rates aggressively since March 2022, in response to soaring inflation, contributed to a decline in consumer confidence and President Biden`s approval rating. With inflation showing signs of cooling, the Fed now aims to stimulate the economy by gradually reducing interest rates, unless a recession appears imminent, in which case they will act more aggressively. This shift in policy is expected to positively impact consumer sentiment and reinforce the notion that high inflation is abating.