Responding very positively to a strong economy that has seen inflation cooling to a 3-year low, the Federal Reserve lowered its prime interest rate by a half point today, its first rate cut since 2020:
The Fed cuts interest rates by a half percentage point, an unusually large move. This signals that central bankers think they are winning their war against rapid inflation, and that they are now turning their attention to keeping the job market from weakening too much.
The Fed also projected another half point of rate cuts later this year, which would lower the central bank’s policy rate to 4.4 percent. And by the end of 2025, they expect rates to be down to 3.4 percent.
That’s a more aggressive rate cut path than Fed policymakers had previously anticipated. When they last released economic estimates in June, they expected to cut borrowing costs to 4.1 percent by the end of next year...
This is even more good news for John McCain Joe Biden and Kamala Harris!
