By Zach Halaschak | Washington Examiner
The Federal Reserve on Wednesday cut its interest rate target by a half of a percentage point, the first time the central bank has trimmed rates in over four years.
After a two-day meeting of its monetary policy committee in Washington, D.C., the Fed announced it would move its rate target to range of 4.75% to 5.00%.
Many investors had bet that the Fed would implement a smaller rate cut — an unusual disconnect, as Fed decisions are typically telegraphed long in advance.
The rate cut comes after years of near-frantic efforts by the central bank to arrest inflation. Wednesday’s move signals that the Fed sees the inflation threat as over, and now believes the bigger threat is the possibility of an economic slowdown and even a recession.