Fed Cuts Rates .50 to Support Growing US Economy
The Federal Open Market Committee announced it would be cutting the federal funds rate by half a percentage point, or 50 basis points, putting the benchmark rate at 4.75% to 5%. It’s the first time the rate has been dropped since March 2020. Back then, members of the Fed were concerned that the coronavirus pandemic would lead to widespread job losses and a massive contraction of consumer spending. The effective rate hit 0.05% in April 2020. But after a historically brief recession, the American economy bounced back. In March 2022, the rate began a sharp ascent, reaching 5.33% this month.