The US Federal Reserve has cut interest rates by half a point – the first cut since rates hit zero in 2020. The Fed’s chair, Jerome Powell, said the cut reflects the beginning of a “recalibration” of policy, as officials believe inflation has stabilised while unemployment rate has increased over recent months. He rejected suggestions that the cut was politically motivated or related to the upcoming presidential election. Powell also assured that the likelihood of a recession from his viewpoint is low.
