Fed goes big cutting interest rates by a half of a point

September 19, 2024

The Federal Reserve said Wednesday it was lowering its key interest rate by half a percentage point, an unusually aggressive move designed to cushion the economy from a further slowdown.

The central bank noted job gains had slowed while inflation had made further progress toward its 2% goal.

At a follow-up news conference, Fed Chair Jay Powell said the labor market and the economy in general remain in "solid shape."

By making the larger cut, he said, "our intention is to keep it there."