What is Fed Rate Cut?
4939 reads · Last updated: December 5, 2024
The Federal Reserve's interest rate cut refers to the measure taken by the Federal Reserve System of the United States to lower the benchmark interest rate. The Federal Reserve adjusts the benchmark interest rate to influence market interest rates and the money supply in order to regulate the economy. Interest rate cuts are usually seen as an economic stimulus measure aimed at promoting consumption and investment and boosting economic growth. Interest rate cuts may lead to a decrease in loan interest rates, stimulating borrowing and investment activities, but they may also bring inflation risks. The Federal Reserve's interest rate cut decisions have significant impact on financial markets and the global economy.
