Federal Reserve Cuts Interest Rate By Half-Point

September 18, 2024 Economy, Government

The Federal Reserve on Wednesday said it is cutting its benchmark interest rate by 0.50 percentage points, marking the first reduction in four years and moving to ease borrowing costs as inflation-weary consumers are grappling with high rates on everything from mortgages to credit cards.

It is the first drop in the federal funds rate — or what banks charge each other for short-term loans — since the U.S. central bank lowered rates to nearly zero in March 2020 amid an economic standstill caused by the pandemic.

But as prices surged during the health crisis, the Fed repeatedly hiked rates into a target range of 5.25% to 5.5%, the highest in 23 years, in an effort to curb inflation.

Read the full article.

The Federal Reserve is cutting its benchmark interest rate by 0.50 percentage points, marking the first reduction in four years.

“I think this is the right move,” says CBS News business analyst Jill Schlesinger. https://t.co/eJ3dao6wDZ pic.twitter.com/Tu3QnycqoU

— CBS News (@CBSNews) September 18, 2024