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. The Fed`s delay in raising rates initially led to a rapid series of increases, impacting borrowing costs and consumer sentiment. While inflation has been declining, the Fed`s cautious approach kept rates high, likely contributing to President Biden`s low approval ratings and decision not to seek re-election. With the latest announcement, the Fed signals a turning point, aiming to stimulate the economy while closely monitoring inflation. This move, though expected, has significant implications for the markets and consumer confidence.