It finally happened.
After months of panic-induced anticipation, the Federal Reserve of the United States of America has finally decided to cut interest rates by 50 basis points.
This is the first time the bank is slashing rates since March of 2020. The motivation is recent data that showed America’s economy is growing steadily, even as job gains have slowed down.
Unemployment has risen slightly, though it remains relatively low. Meanwhile, inflation is closer to the Fed’s goal of 2%, but it’s still higher than they’d like.
In its statement, the Fed says its goal is to maintain a delicate balance between maximum employment and price stability. The committee believes the risks of not hitting either of those goals are more balanced now than they were before.
But they aren’t entirely sure what’s coming next for the economy. It’s still hard to tell which way things will go. The central bank said that:
“The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.”
This is a developing story
