Federal Reserve Cuts Interest Rates for First Time Since 2020

The Fed's decision aims to ease borrowing costs amid a cooling labor market and approaching election.

The Federal Reserve has reduced its benchmark interest rate, marking the first cut since the pandemic's early days.
The rate cut is expected to lower borrowing costs for mortgages, auto loans, and credit cards, providing relief to households and businesses.
Fed officials are divided between a quarter-point and a half-point reduction, with markets favoring a larger cut.
The decision comes as inflation has significantly cooled, with the Consumer Price Index dropping to 2.5% from a mid-2022 peak of over 9%.
The move is politically significant, potentially boosting Vice President Kamala Harris's campaign while drawing criticism from former President Donald Trump.