Fed Signals Interest Rate Cuts 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 believes high inflation is under control. The Fed`s delay in raising rates until inflation was already high forced them to act aggressively, negatively impacting consumer sentiment and potentially contributing to President Biden`s low approval ratings. With inflation now falling, the focus shifts to when and how quickly the Fed will cut rates, a decision heavily influenced by incoming economic data.