Fed Cuts Rates by Half Point in Decisive Bid to Defend Economy
- Powell warns against assuming additional big rate reductions
- Governor Michelle Bowman dissents in favor of smaller move
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The Federal Reserve lowered its benchmark interest rate by a half percentage point Wednesday, an aggressive start to a policy shift aimed at bolstering the US labor market.
Projections released following their two-day meeting showed a narrow majority, 10 of 19 officials, favored lowering rates by at least an additional half-point over their two remaining 2024 meetings. Seven policymakers supported another quarter-point rate reduction this year, while two opposed any further moves.