It finally happened.
After months of panic-induced anticipation, the Federal Reserve of the United States of America has finally decided to cut interest rates by 50 basis points.
This is the first time the bank is slashing rates since March of 2020. The motivation is recent data that showed Americaâs economy is growing steadily, even as job gains have slowed down.
Unemployment has risen slightly, though it remains relatively low. Meanwhile, inflation is closer to the Fedâs goal of 2%, but itâs still higher than theyâd like.
In its statement, the Fed says its goal is to maintain a delicate balance between maximum employment and price stability. The committee believes the risks of not hitting either of those goals are more balanced now than they were before.
But they arenât entirely sure whatâs coming next for the economy. Itâs still hard to tell which way things will go. The central bank said that:
âThe Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committeeâs goals.â
This is a developing story
