Fed officials now see more unemployment and less inflation this year and next year. | Economy

The US Federal Reserve has cut interest rates by half of a percentage point, kicking off what is expected to be a steady easing of monetary policy with a larger-than-usual reduction in borrowing costs that followed growing unease about the health of the job market.

NEW YORK : The dollar dropped after the Federal Reserve on Wednesday cut interest rates by half a percentage point, citing greater confidence that inflation will continue to recede to the U.S. central bank's 2 per cent annual target.The Fed cut the overnight rate to the 4.75 per cent-5.00 per cent range a

The Federal Reserve cut interest rates by half of a percentage point on Wednesday, kicking off what is expected to be a steady easing of monetary policy with a larger-than-usual reduction in borrowing costs.

Many are ecstatic about the 0.5 percentage point rate cut the Fed delivered. But there are good reasons to think it comes from concern and not optimism.

Policymakers see the Fed’s benchmark rate falling by another half of a percentage point by the end of this year.

The Federal Reserve on Wednesday cut its benchmark interest rate by an unusually large half-point, a dramatic shift after more than two years of high rates that helped tame inflation but also made borrowing painfully expensive for American consumers.

Committee sees another half-point of cuts in rest of 2024.

The so-called dot plot indicated that 19 FOMC members see the benchmark fed funds rate at 4.4% by the end of this year.

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:The U.S. dollar edged lower on Thursday after a larger than usual interest rate cut from the U.S. Federal Reserve that had been priced in by markets.The Fed on Wednesday kicked off its monetary easing cycle with a half-percentage-point rate cut that Chair Jerome Powell said was meant to show policymakers' co