The Impact of Interest Rate Cuts September 2024 – A Turning Point in the Global Economy
Interest Rate Today 18th Sep 24
As of September 2024, interest rates are a significant focus in the global financial landscape. The Federal Reserve recently made a pivotal decision, cutting its benchmark interest rate by 50 basis points for the first time since 2020. This shift marks a turning point after two years of aggressive rate hikes aimed at curbing inflation. Now, with inflation nearing the Fed’s 2% target, the focus has shifted to sustaining economic growth and protecting the labor market (KNAU) (Investopedia).
Why the Rate Cuts Matter
For the past two years, the Federal Reserve has steadily raised interest rates, reaching a 23-year high. The primary goal was to combat inflation by reducing consumer demand. Higher interest rates made borrowing more expensive, which...