RALEIGH, N.C. (WTVD) — The Federal Reserve announced a half-point interest rate cut Wednesday, marking the first such move in four years.
“I think the Fed is certainly signaling a turning point that they have confidence that the fight against inflation has largely been won and at the same time, concern about weakness not just in the labor market, but if you look at the data on credit cards and late mortgage payments, that’s been inching up some as well,” said Dr. Steven Allen, a professor of economics at the Poole College of Management at NC State University.
The decision comes following last week’s CPI report showed year-over-year inflation at 2.5%, a figure above the Federal Reserve’s target of 2%, though markedly lower than previous months. Previously, the Fed has been resistant in moving forward with such moves, and most economists predicted Wednesday’s announcement to be a quarter-point cut.
Initially, Wall Street reacted favorably, with the Dow Jones, NASDAQ, and S&P all …