US Fed cuts rates by 0.5 percentage point

The US Federal Reserve has cut its benchmark interest rate by 0.5 percentage points to a range between 4.75 and 5 percent. The adjustment aims to maintain economic and labor market strength and facilitate continued progress against inflation, stated Fed Chair Jerome Powell. This decision, made after a two-day meeting, marks the first rate cut since March 2020 and holds significance for the global economy, including an impact on Danish mortgage rates. Kristian Skriver of Dansk Erhverv interpreted this as the Fed easing on the brakes, maintaining a tight monetary policy despite the cut. The Federal Reserve was established in 1913 to balance the economy and optimize employment while stabilizing prices. The rate cut was decided by a committee, with unanimous support except for one member who favored a smaller cut.