Interest rate cuts for first time in four years in US

Washington: The US central bank has cut interest rates for the first time in four years to control inflation.

Inflation in the US, the world's largest economy, had pushed interest rates to their highest levels in two decades.

The US Federal Reserve has announced a 50 basis points cut in interest rates.

Fed policymakers also expect interest rates to be cut by another 50 basis points this year.

Wall Street also ended the day slightly lower after the interest rate cut announcement, with the S&P 500 down 0.29 percent.

Inflation, which peaked in the summer of 2022, has also slowed, Steve Sosnick, chief market strategist at Interactive Brokers, told the foreign news agency.

The decision by the Federal Reserve Bank to cut its benchmark federal funds rate from 4.75 percent to 5 percent marks a turning point in its fight against inflation.

“This decision to cut interest rates reflects our growing confidence,” Federal Reserve Bank chief Jerome Powell told reporters.