Fed Signals Interest Rate Cuts as Inflation Eases

After much anticipation, the Federal Reserve has announced it will begin lowering interest rates. This decision comes after inflation, which surged to 9% in June 2022, has finally begun to fall. The Fed`s aggressive rate hikes to combat inflation, which started later than many economists advised, have slowed the economy and hurt President Biden`s approval ratings. Now, with inflation seemingly under control, the Fed is pivoting to stimulate the economy with rate cuts. The timing and speed of these cuts will depend on future economic data, but the move is expected to boost consumer confidence and potentially impact the upcoming election.