Fed Signals Interest Rate Cut as Inflation Eases

The Federal Reserve, after much anticipation, is finally lowering interest rates. This decision comes after over a year of inflation, which peaked in June 2022, prompting the Fed to raise rates at an unprecedented pace to combat it. This rapid increase in rates, while necessary to curb inflation, negatively impacted consumer sentiment 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 investors who have been eagerly awaiting this policy change.