Fed kicks off Interest Rate cut with 50-basis-points, Harris and Trump react [Video]

The U.S. Federal Reserve initiated a series of anticipated interest rate cuts on Wednesday with an unexpectedly large 50-basis-point reduction. This move aims to underscore the Fed’s commitment to maintaining low unemployment amid easing inflation, according to Federal Reserve Chair Jerome Powell.

“We made a strong start, and I am very pleased with our decision,” Powell stated at a press conference. The Fed reduced its benchmark policy rate to a range of 4.75%-5.00%, citing increased confidence that the period of high inflation is over. Powell described the decision as clear from both economic and risk management perspectives.

Diane Swonk, Chief Economist at KPMG, suggested that a “soft landing” for the economy is achievable, which could cement Powell’s legacy as Fed Chairman.

In addition to the immediate rate cut, Fed officials projected further reductions: another 50 basis points by year-end, a full percentage point next year, and an additional 50 basis …