The U.S. Federal Reserve made a significant move on Wednesday, cutting interest rates by half of a percentage point. This decision marks the first rate cut since March 2020 and comes as the central bank aims to address cooling inflation and prevent a weakening labor market.
With the new target range set between 4.75 percent and five percent, the Fed is signaling the beginning of an easing cycle. This shift could have wide-ranging implications for both the U.S. economy and global markets.
Following the announcement, U.S. stock indices responded with modest declines. The Dow Jones Industrial Average dipped by 0.25 percent, while the S&P 500 and the tech-focused NASDAQ Composite Index fell by 0.29 percent and 0.31 percent, respectively. Investors are closely watching these developments, anticipating how this policy change might influence economic growth and market stability in the coming months.
Reference(s):
cgtn.com
