US Fed cuts key lending rates by 50 basis points

The US Federal Reserve has reduced its key lending rate by 50 basis points, marking the first rate cut since the COVID-19 pandemic.

This move lowers borrowing costs for consumers and businesses, impacting loans such as mortgages and credit cards.

Lending rates

The decision signals a shift away from the high interest rate environment that was aimed at curbing demand, as inflation continues to ease and the labor market cools.

The Fed’s rate cut comes as the US economy shows resilience in the post-pandemic period.

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Staff Writer

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