Federal Reserve Lowers Key Interest Rate: First Time in Four Years

The U.S. Federal Reserve has reduced the benchmark interest rate by 50 basis points to a range of 4.75% to 5.00%. This marks the Fed's first rate cut in four years. In its statement, the Federal Open Market Committee (FOMC) emphasized that it is increasingly confident that inflation is sustainably trending towards 2%. The Committee also assesses that the risks to achieving its goals regarding employment and inflation are largely balanced. Nonetheless, the economic outlook remains uncertain. Projections from Fed members indicate two more rate cuts of 25 basis points each this year. In 2025, an additional four rate adjustments are expected to follow. In the above video, Jennifer Schonberger, Yahoo Finance’s Federal Reserve reporter, discusses the latest developments. For more in-depth insights and current market movements, click here to watch the full episode of Market Domination.