US Federal Reserve makes significant interest rate cut, first in four years, to support economic growth

The Federal Reserve has cut interest rates by 0.5 percentage points, marking the first reduction in over four years. This decision was made by the Federal Open Market Committee, with the goal of easing borrowing costs and supporting economic growth. The move is seen as a response to easing inflation and a cooling labor market, with policymakers expressing confidence that inflation is moving towards the central bank's 2% target. However, Federal Reserve Chair Jerome Powell noted that the decision was "strong" but necessary due to growing job market concerns. Notably, this decision was not unanimous, with Federal Reserve policymaker Michelle Bowman dissenting from the rate decision for the first time since 2005. The rate cut is expected to provide relief to US borrowers who have been dealing with high interest rates for over two decades.