Federal Reserve Cuts Rates By Half a Point and Signals Era of Easing Has Begun

The Federal Reserve cut its benchmark interest rate by half a percentage point [non-paywalled source] on Wednesday and signalled more reductions would follow, launching its first easing cycle since the onset of the pandemic. Financial Times: The US central bank's first cut in more than four years leaves the federal funds rate at a range of 4.75 per cent. Michelle Bowman, a governor on the Federal Open Market Committee, voted against the decision, favouring a quarter-point reduction. The half-point cut is larger than the Fed's more customary quarter-point pace and suggests the US central bank is concerned about the prospects of a weakening economy after more than a year of holding rates at a 23-year high.