Federal Reserve signals end to inflation fight with a sizable half-point rate cut

BY CHRISTOPHER RUGABER
Updated 5:05 PM EDT, September 18, 2024

Key points

The Federal Reserve slashed its benchmark interest rate by half a percentage point, the first and the biggest cut since March 2020 when COVID-19 was hammering the economy.

The cut amounts to a declaration of victory over inflation, which has come down from a peak of 9.1% in June 2022 to 2.5% last month.

The Fed signaled that it will cut the rate by another half a percentage point this year and expects four more cuts in 2025 and two in 2026.

Approved ~ Primus Pilus

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Article URL : https://apnews.com/article/interest-rates-inflation-prices-federal-reserve-economy-0283bc6f92e9f9920094b78d821df227