Interest rates slashed just ahead of the presidential election

WASHINGTON – (INT) - The Federal Reserve appears to be on its most aggressive inflation-fighting course since the 1980s.

It slashed interest rates by a half-percentage point Wednesday and signaled two additional cuts this year and possibly four more in 2025.

The Fed’s decision is the first easing of monetary policy since 2020.

“The (Fed) has gained greater confidence that inflation is moving sustainably toward 2%, and judges that the risks to achieving its employment and inflation goals are roughly in balance,” the Fed said in a statement after a two-day meeting.

The move is expected to ripple through the economy, providing the first dose of relief in years to Americans who have struggled with high borrowing costs for mortgages, credit cards, and auto and other loans.

It comes less than 7 weeks before the November 5th presidential election.