The Fed Drops Interest Rates by half a percentage point

The Federal Reserve cut interest rates by half a percentage point. It's the first cut in about 4 years.

The move is a very positive statement about the economy and inflation.

A Federal Reserve statement said “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,”.

The Fed also expects to make another half-point reduction before the end of the year.

Through 2025, the central bank forecasts interest rates landing at 3.4%, indicating another full percentage point in cuts. Through 2026, rates are expected to fall to 2.9% with another half-point reduction.