The US Federal Reserve has cut interest rates

US Federal Reserve has taken a key decision. The Federal Open Market Committee (FOMC) has announced that it will cut interest rates by 50 basis points.

With this decision, interest rates have come down for the first time since 2020. Interest rates have reached a 22-year high of 4.75-5.0 percent from earlier 5.25-5.50 percent.

“The committee is confident that inflation is moving steadily towards 2 percent. With this, it seems that there is a balance in achieving the employment and inflation targets,” said the designers of the Fed’s rate setting committee. With US elections in two months, the decision to cut interest rates will become crucial.

This will have an impact on every sector from consumers who take loans from banks to businessmen. It seems that there will be a reduction in interest rates in 2025 as well.