Fed cuts rates for first time in 4 years, by half a percentage point

Yen at 142 to dollar following news of lower U.S. interest rates

On September 18, 2024, the U.S. Federal Reserve made a significant move by cutting interest rates for the first time in over four years, reducing them by half a percentage point to a range of 4.75% to 5%. This decision comes in light of robust economic data, with the Fed aiming to achieve a "soft landing" that manages inflation while avoiding a recession.

Fed Chair Jerome Powell emphasized the positive state of the economy during a post-decision news conference, noting solid growth, decreasing inflation, and a strong labor market. The Fed's strategy appears focused on sustaining this economic momentum while carefully navigating potential risks.