Fed Slashes Interest Rates by Half Percentage Point, First Cut in 4 Years

The Federal Reserve has cut interest rates for the first time in four years after concluding its two-day policy meeting on Sept. 18. Monetary policymakers kicked off their first easing campaign since the onset of the coronavirus pandemic by lowering the benchmark federal funds rate by 50 basis points, to a range of 4.75–5.00 percent. Investors had widely expected that the central bank would start the new cycle in an aggressive manner. “The committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance,” said the post-meeting statement from the Federal Open Market Committee (FOMC)....