We concluded that this was the right thing for the economy and the people we serve,” the Federal Reserve chair, Jerome Powell, said, referring to the central bank’s decision to cut interest rates by half a point.

What Do Fed Rate Cuts Do? The Fed only officially controls the federal funds rate, which determines the interest charged in overnight cash reserve transactions between banks. But

After years of rate hikes in its effort to tame rising inflation, the central bank has elected to do something it hasn’t done since 2020: make a cut. While on one hand the Feds