Fed Signals Interest Rate Cuts as Inflation Eases

The Federal Reserve is finally cutting interest rates after over a year of speculation. While the market anticipated this move, it signifies a turning point in economic policy. The decision comes after a period of high inflation, triggered by various factors including the pandemic and the war in Ukraine, which led the Fed to aggressively raise interest rates to combat rising prices. This impacted consumer borrowing costs and coincided with a decline in President Biden`s approval ratings. With inflation showing signs of easing, the Fed is now shifting its approach by gradually lowering interest rates, aiming to boost consumer confidence and stabilize the economy.