Summary:

In September 2024, the Federal Reserve announced a significant interest rate cut of 0.5%, lowering the federal funds rate to a target range of 4.75% to 5%. This decision came as the Fed observed continued economic growth, though job gains slowed, and inflation showed signs of progress toward the 2% target. The rate cut aims to support maximum employment while stabilizing inflation. Despite this move, the Fed remains cautious, closely monitoring data to adjust policy as needed to balance employment and inflation risks.