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The U.S. Federal Reserve cut interest rates by half a percentage point on Wednesday, beginning what is expected to be a steady easing of monetary policy with a larger-than-usual reduction in borrowing costs in the wake of growing concerns about the health of the labor market.
“The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent and assesses that risks to achieving the employment and inflation goals are roughly balanced,” policymakers on the Fed’s interest rate-setting committee said in their latest statement.
Policymakers see the Fed’s benchmark interest rate falling another half percentage point by the end of this year, another full percentage point in 2025, and a final half percentage point in 2026 to end up in a range of 2.75%-3.00%.
