In a significant move that could impact the upcoming presidential election, the US Federal Reserve has reduced its key lending rate by half a percentage point. This marks the first rate cut in over four years and is intended to lower borrowing costs for consumers and businesses.
The Fed’s decision comes as inflation has been gradually declining and the labor market has shown signs of cooling. This easing of economic pressures has allowed the central bank to begin reversing its previous policy of raising interest rates to curb demand.
The rate cut is likely to benefit Democratic presidential candidate Kamala Harris, who has been campaigning on issues of economic relief. In a statement, Harris welcomed the news but emphasized the need for continued efforts to reduce prices.
Republican candidate Donald Trump, however, criticized the Fed’s decision, suggesting that it was either a response to a weak economy or a politically motivated move. He noted that the rate cut was substantial and could have implications for the stock market.
Following the Fed’s announcement, major US stock indices experienced a decline.
