OAN Staff Brooke Mallory
3:37 PM – Wednesday, September 18, 2024
At their meeting on Wednesday, the Federal Reserve cut its benchmark interest rate by a half percentage point, satisfying investors who had been expecting a strong move given the weakening employment picture.
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“Fed Governor Michelle Bowman was the lone dissenter, preferring a quarter-point cut,” USA Today reported.
The central bank projected a total of barely 0.5 percentage points in further cuts for the remainder of the year, indicating that policymakers do not think the labor market is imploding.
Due to the increasing risk to economic expansion posed by the “deteriorating labor market,” officials say, they decided to take a chance and lower interest rates aggressively.
“The [Fed] has gained greater confidence that inflation is moving sustainably toward 2%, and judges that the risks to achieving its employment and inflation goals are roughly in balance,” the Federal Reserve said in a statement. “The economic outlook is uncertain, and the Fed is attentive to the risks of both sides of its dual mandate.”
Wednesday appears to be the beginning of the end for the prolonged nightmare of excessive expenditures affecting our daily lives, officials continued.
The institution claims to be “committed to sustaining robust economic growth” without inducing a severe recession.
Previously, some talking head analysts appearing on cable news programs expressed uncertainty about whether this choice will ultimately help the majority of Americans as the Fed continues to work toward their objective.
Rent, groceries, gas, and other expenses have all skyrocketed since President Joe Biden was elected in 2020, along with loan rates.
56th GOP Speaker of the House Mike Johnson also commented on the news.
“The Federal Reserve Chairman admitted the massive influx of illegal immigrants under Biden and Harris has raised the unemployment rate. This administration’s refusal to secure the border is actively harming American workers and our economy,” Johnson said on X.
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