Fed Signals Interest Rate Cut as Inflation Eases

The Federal Reserve, after much anticipation, is finally lowering interest rates. This move, while expected, is significant as it signals the Fed`s confidence in declining inflation. The Fed`s aggressive interest rate hikes, initiated to combat the surge in inflation that began in 2021, appear to have been successful. While these hikes helped curb inflation, they also negatively impacted President Biden`s approval ratings due to their effect on consumer borrowing costs. With inflation now falling, the focus shifts to the Fed`s next steps, with investors eagerly awaiting any indication of future rate cuts.