The central bank was motivated by the change in the employment rate, among other factors.
The Federal Reserve cut interest rates by half a point on Wednesday, an unusual move for the central bank. This is the first rate cut in over four years and comes as the Labor Department has reflected a slower job market, and updated previous data to show lower employment numbers.
The central bank’s members predicted that further rate cuts may be made in the November and December meetings this year. The officials stated that they “has gained greater confidence that inflation is moving sustainably toward 2%.”
The rate cut will impact mortgage lending and credit card interest rates. The prime rate will now be between 4.75% and 5%, down from 5.25% to 5.5%, which was the highest rate in 23 years.
Regarding the rate of inflation, Federal Reserve Chair Jerome Powell said, “We’re certainly not saying mission accomplished or anything like that, but we are encouraged by the progress we have made.”
As the Lord Leads, Pray with Us…
- For Chairman Powell and members of the Federal Reserve as they survey the nation’s economic landscape.
- For the president, vice president, and economic officials in the administration as they pursue their agenda.
- For Americans in general as they seek to make ends meet with the current cost of living.
Sources: VOA News, CBS News
