The Federal Reserve cuts rates - 8th November 2024

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The Federal Reserve cuts rates - 8th November 2024

The Federal Reserve announced yesterday a cut to borrowing costs by 0.25%, the second rate cut of the year following September’s reduction, bringing the interest rate banks charge each other for borrowing money to a range of 4.5% to 4.75% from its current 4.75% to 5% level. 

The Fed's 0.25% cut will provide some relief for consumers, although the initial benefit will be small, experts say. The Fed is expected to continue cutting rates over the next few months.

Inflation has made progress towards the 2% goal but remains somewhat elevated and Fed Chair Jerome Powell noted that Americans "are still feeling the effects of high prices" despite the slowdown in inflation.

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