The United States Federal Reserve has cut interest rates by a larger-than-usual half-percentage-point. Federal Reserve Chair Jerome Powell, according to Reuters, said the move was meant to show policymakers' commitment to keeping unemployment low as inflation eases. "We made a good strong start, and I am very pleased that we did," Powell said, having reduced the benchmark policy rate by 50 basis points to 4.75%-5.00%. He described the move as a "recalibration" to account for the sharp decline in inflation. The reduction signals a significant change in US monetary policy. Policymakers also predicted a further 50-basis-point cut by the end of 2024, a full percentage point next year, and 50 basis points in 2026. "It's vital that inflation stays low, so we need to be careful not to cut too fast or by too much," Governor Andrew Bailey said. The latest data suggests inflation is likely to rise to around 2.5% by the end of the year, up from 2.2%, according to the BoE. The Bank of Japan has...
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