The Federal Reserve has reduced the main interest rate by half a percentage point to 4.75%-5% due to progress in lowering inflation from over 9% to aim for a 2% target. Fed Chair Jerome Powell noted that this decision reflects confidence in maintaining labor market strength amid moderate growth. Projections indicate further rate cuts, with expectations of a federal funds rate of 4.4% by December and 3.4% next year. Despite rising unemployment and slow payroll growth, the economy is performing better than expected, with GDP growth anticipated at 2% this year. Powell expressed optimism about ongoing inflation management.

Source: https://www.supplychaindive.com/news/fed-cuts-main-rate-by-half-point-voices-confidence-inflation-falling/727447/